Yahoo! - Microsoft Deal a “No Deal”

May 5th, 2008 • Related • Filed Under

In my posting here I already wrote about the acquistion offer Microsoft had made for Yahoo. Yahoo!, especially Jerry Yang appeared greedy not that pleased and declined the offer. Microsoft sweetened the deal to 50 Billion Dollars, but Yahoo said no. Microsoft had made the offer when Yahoo’s stock was below $20.00 and this would have meant an offer per stock of $35.00. Well, it ain’t gonna happen. I sold my Yahoo stock that I had bought in the lower $20s at the peak with the right gutt feeling. Over the weekend Microsoft withdrew their offer and even before the stock market officially opens Yahoo’s stock is taking a dive (it’s at somewhere around $22 at the time of this writing).

I personally think this is a great move by Microsoft and it was an extremely stupid move by Yahoo. Oh, well ….. Jerry Yang is running very short on time to proof that he can turn around Yahoo’s fate. Several large stockholders are extremely angry about this deal not going through. I see trouble heading Jerry Yang’s direction. If he fails to show that Yahoo is worth more than $35 in the next 6 months he won’t have a very pleasant time ….

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