Microsoft to Yahoo: You're On Your Own
Late last week, Microsoft made it clear that Yahoo wasn't
worth the money
it would take to buy it. This was after Microsoft raised
its offer from $44 billion to nearly $48 billion.
I couldn't agree more. Yahoo isn't as large as you might think, and its growth
isn't as impressive as, say, Google. In the last quarter, Yahoo brought in a
bit less than $2 billion in revenue and only $112 million in operating income.
The only way a company this size would be worth almost $50 billion is if its
growth were truly staggering, which it's clearly not.
My bigger concern is that Yahoo
has nothing that Microsoft hasn't already built or bought. Microsoft would
be far better off using its billions to invent the future, not to buy the past.
Tell me where I'm wrong at firstname.lastname@example.org.
Posted by Doug Barney on May 05, 2008 at 11:52 AM