John

Don’t Call It MicroHoo! Yet: Jerry Yang’s Still Clingin’ On

In News, Online on March 19, 2008 at 7:05 am

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So the saga continues. News of the Yahoo-Microsoft takeover is starting to peter off as the weeks go by since the headline shocker of “Largest Web Takeover”, but occasionally I do find some bits and pieces that are worth following up on. This was picked up by the Guardian yesterday, where Yahoo! announced financial plans showing that Microsoft’s “unsolicited acquisition proposal substantially undervalues Yahoo”.

Its stock rose up nearly 5% after news broke out–looks like Jerry Yang is one determined guy who wants to keep the company from falling into Microsoft’s hands, and he just might do it yet. But then again, it’s Yahoo, which has played second fiddle to Google for so long now in terms of innovation.

That makes many wonder if they have they have the right resources to carry out Yang’s goals in “developing Yahoo.com, My Yahoo, search and mail to be more ‘open, social and relevant’ to users,” as well as developing a new advertising platform and improving Panama.

Here’s an excerpt:

Yahoo’s share price rose nearly 5% today after the internet company released details of a three-year plan that it claims proves that Microsoft’s takeover offer “substantially undervalues” its business.

The internet content company has put forward a financial plan saying it expected to “roughly” double operating cash flow to $3.7bn and generate $8.8bn (£4.36bn) in revenue by 2010.

Yahoo also said that it would meet City expectations for its first quarter, a key concern for analysts who had speculated that if the company missed its targets Microsoft might drop its $31-a-share offer and come back with a lower bid.

The company’s share price on New York’s Nasdaq exchange had risen by 4.45% to $27, at 13.33pm UK time, following today’s announcement.

Yahoo said the plan was presented to its board of directors in December, before Microsoft’s bid. The company added that it “supports the unanimous determination by the company’s board of directors that Microsoft’s … unsolicited acquisition proposal substantially undervalues Yahoo”.

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  1. I just read your article about the potential Yahoo/Microsoft merger and thought you might be interested in a new blog post I wrote about some of the employee exodus going on over at Yahoo these days http://blog.bincsearch.com/?p=153 . We’re pretty tapped into the flow of talent out of Yahoo and thought the world might find this of interest. If you’re ever looking for information that might be helpful for future articles, please feel free to reach out to me anytime.

    Boris Epstein

    CEO – BINC

    http://www.askbinc.com

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