Yahoo! yaboo!

Ya boo sucks to you!

I’m hardly shocked that Yahoo politely declined Microsofts offer.

But…

No offence like, but ‘it substantially undervalues its brand, audience, investments in advertising platforms and future growth prospects, free cash flow and earnings potential.’ is utter nonsense. I would have said they over-valued it. Dunno about over there, but round here its pretty hard to negotiate when everyone knows you’re talking fantasy.

Its 2008, who tf is Yahoo anyway?? I would have said it was a fairly stale old skool t’internet portal that no one uses now that google owns search. I know it best for all the ‘cheap MEDs’ spam I get from yahoo addresses. Hundreds got through my ISPs pitiful ‘spam filter’ only today (not all from yahoo btw). (Not to mention all the bounces from twats spamming by spoofing the codematic domain).

I could be wrong of course, I missed facebook (lasted less time than the first skateboard fad that), I’m not on MySpace, so maybe I’m too old skool myself!

I can understand Yahoo not wanting to get taken over, and especially by Microsoft. But I don’t see any way their shareholders are going to get any more value. Unless Microsoft are going to up their offer a few quid. But the whole saga is killing MSFT shares so that hardly seems in the best interest of MS shareholders. (Long term maybe?? what 2050?).

As MS shares plummet they will have to offer more and more of them to boost the offer. So MS make a better offer lets say 38 USD based on an MS share price of 28 USD, by the time Yahoo review it, MS price has dropped to 26, now the offer is only worth 36 again (roughly) etc etc.

I can’t see the point, the goal post will have moved so much by the time it got through anti trust (if it got through).

I think MS would be better buying Adobe, and owning the desktop. But I’m sure I’m missing something (the much over hyped death of the desktop perhaps?).

What do you think?  Do you use Yahoo much? what for?

Do you think it is somehow essential for MS to get Yahoo?

Cheers

Simon

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4 Responses to “Yahoo! yaboo!”

  1. Peter Quinn Says:

    I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Peter Quinn

  2. Harlan Grove Says:

    Microsoft’s bid for Yahoo! proved it can’t compete currently against Google in Google’s main markets. If that’s what caused its share price to tank, too late to undo the damage. ‘Course their share price might also reflect wide-spread belief that they will acquire Yahoo! but they still won’t succeed against Google, so it’ll be so much money squandered.

    As for your last point, Microsoft buying Yahoo! might survive regulatory scrutiny, but buying Adobe wouldn’t.

  3. Simon Says:

    Harlan, why no Adobe? too much desktop?
    I hadn’t thought of the share price reflecting the admission of being uncompetitive, good point, but everyone knew that surely?
    Yeah I get the feeling this could be a monumental blunder, I expect Google is already looking at leasing more office space for the potential influx.

  4. Lord Says:

    Yahoo has some nice properties, see for example about the 5th posting in http://paul.kedrosky.com/archives/2008/02/
    (no direct link) in email, finance, sports, movies. Top in many areas. They are very successful in pageviews, it is just they have been slow at monetizing it. While they have been gearing up against Google, it will take them much longer to realize it and may never equal them in search.

    It is an awkward match for MS. Adobe would be much closer, but probably too close and more slowly growing. It is somewhat desperate to diversify into a growing area before it’s monopoly becomes further irrelevant. It is hard to believe this will turn out well.

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