Yahoo or Yikes?
Yahoo hasn't done particularly well since Microsoft's unsuccessful hostile takeover
this past February. That same month, Yahoo laid off a thousand workers, but
then hired back more to fill their places. Now Yahoo promises to print up to
1,500 pink slips -- this after announcing a 64 percent earnings decline to $54.3
million in the latest quarter.
Moves like this have driven Yahoo's stock down to the point where it's almost
affordable. In fact, shareholders are pining for the days when Microsoft offered
almost $45 billion for the company. The offer was for $33 a share. Yahoo, last
time I checked, was trading for around 12 bucks. Yikes!
So does this mean Microsoft should offer $15 billion now for Yahoo? Even at
that price, I think it's a bad idea, a me-too play aimed at Google but one that
lacks innovation and punch. Is a $15 billion Yahoo a bargain? Financial acumen
welcome at email@example.com.
And you can find the LA Times story on Yahoo's woes posted at our new
Web site, RedmondReport.com.
Posted by Doug Barney on 10/22/2008 at 1:16 PM