Feb 15, 2008
I read today that Yahoo appears set on delaying the inevitable.... Not sure whether Jerry Yang et al, really don't want to sell out, or if they're angling for $36/share. Either way, this deal is not a slam dunk - at least not yet. Apparently, the Yahoo board is split - between two key Factions. You've got the hardnosed investors, who evidently think $40B is a no brainer, and Yahoo loyalists, led by Jerry Yang - who are much less reluctant to sell out to Microsoft.
Hey Jerry, it's always hard to say goodbye, but you may want to consider your shareholders, who stock with you when times were rough and now deserve a decent payout. You could partner with Myspace or Google, but neither one of these companies can offer Yahoo a $40B payout. The Myspace deal smacks of desperation and you're giving all the leverage to Rupert Murdoch.
Google can monetize your search engine results - but then you'll become reliant on a 3rd party for over 50% of your revenue. You've been down that road before and it's not fun.
Now, you need a plan which willl persuade Yahoo shareholders to willingly take an instant 40%+ hit to their holdings on the hope that the Company will be able to deliver even more value over the next couple of years.