Here it is Sold Kelkoo at a loss of 400 Million Euros (including profit) even though Kelkoo was Profitable !! Source - http://www.ft.com/cms/s/0/96d4b576-b83a-11dd-ac6d-0000779fd18c.html
Erm, that's part of the reason why but there's also the advertising deal that fell through with Google, their fight to stop the Microsoft takeover and the departure of it's CEO Jerry Yang recently. You might want to think your post title's through a bit more in future.
Everything is down... It's no surprise that Yahoo is down too. There have been some turbulences in Y!, especially when the CEO resigned.
This is the worldwide effect. Economy is bad and consumer spending is less, Which mean less spending on advertisement too. Therefore, companies business dropped.
If Microsoft wanted to, they could swoop back into negotiations with Yahoo! and gobble them up in an acquisition for $11 a share. It's only 6 months later and 1/3 the price.
The financial markets world over are down and majority of the companies' shares have taken a beating.... Why does one single out just Yahoo !!! ? Regards, RightMan
Pretty much everything is down. I think there is a nice buying opp right now for blue chips, I don't know about buying Yahoo right now?
The Yahoo stock dropped dramatically after they decided not to sell to Microsoft. It was around $22, after they announced they were not selling to Microsoft it dropped to about $10.
Yahoo did drop a lot but it is still not too bad, considering that Google also dropped to below $300 and a lot of financial companies and banks had 95% of their values wiped off. Compared to this Yahoo is doing quite well. Dow Jones has dropped from a high of more than 13000 to 8635 as at yesterday. I would say Yahoo mirrors the market performance.
The MAIN reason Yahoo shares are down has little to do with the overall bear market or even the recession. Whenever a company shows weakness, and in Yahoo's case declines a deal with a large competitor (MSFT) only to end up with no better plan you will see a HUGE discount even compared to cash flow value. Who want's to invest in a company that can't make money, seems to be without direction and NOW Who's competitors won't even re-offer a buyout deal at 1/2 the valuation of an original offer that was on the table less than 6 months ago? Will Yahoo keep slipping without direction and a industrially sound CEO? YES. Is there a potential 100% upside when they announce a CEO/and/or a buyout and show the market that they are a viable company (Make their assets transparent/show cash flow and willingness to cut out parts that don't pull their weight)YES!
I would agree with your assessment. But with regards to the buy out offer, I just feel that Microsoft is playing a little hard to get so as to get even better pricing. Even that Google drop out of the race. Microsoft is the sole viable buyer for Yahoo. Given the current weakness in the general market, I would expect Microsoft to drive a hard bargain, especially after the rejection the last time.
I do see your point. BUT why would anyone buy Yahoo as long as they are on the ropes? At a bottom out price both Ask.com, MSFT as well as major marketing firms and Venture Capital companies could buy the parts (Which is what they want. No one want's to buy ALL of yahoo if they can avoid it) cheaper than the whole.. Of course there is a price that Microsoft, Ask.com, Blackstone etc will pay for Yahoo, just based on cash flow. But trust me, that price is MUCH lower than any Yahoo shareholder would ever want to see.. Hell, even I personally could structure a deal (with Vencap finance and Banks) for Yahoo at around $3 a share!
the world is in the crapper in financial terms, theres nothing you can do to stop some companies from losing some $$
If I had a corner in Yahoo, I would NOT wait for a takeover from Microsoft or Venture Capital firms. The value of Yahoo's traffic and customer contacts/leads alone could drive a cashflow that at a very conservative valuation could buy the entire company at $5-$8/share. I will go as far as saying that Yahoo's web properties ALONE (Yahoo.com + National + Services) with the right financial backer could carry the valuation of the entire company! (at cash flow valuation of maybe 20x monthly EBITA revenue). And then a buyer would have the rest of the 'junk' and the war chest to just play with/sell off. BUT, unfortunately the current/previous board and CEO has made NOTHING to create a transparency of the company assets, and now here we are!