Barney's Blog

Blog archive

Yahoo or Yikes?

Yahoo hasn't done particularly well since Microsoft's unsuccessful hostile takeover this past February. That same month, Yahoo laid off a thousand workers, but then hired back more to fill their places. Now Yahoo promises to print up to 1,500 pink slips -- this after announcing a 64 percent earnings decline to $54.3 million in the latest quarter.

Moves like this have driven Yahoo's stock down to the point where it's almost affordable. In fact, shareholders are pining for the days when Microsoft offered almost $45 billion for the company. The offer was for $33 a share. Yahoo, last time I checked, was trading for around 12 bucks. Yikes!

So does this mean Microsoft should offer $15 billion now for Yahoo? Even at that price, I think it's a bad idea, a me-too play aimed at Google but one that lacks innovation and punch. Is a $15 billion Yahoo a bargain? Financial acumen welcome at [email protected].

And you can find the LA Times story on Yahoo's woes posted at our new Web site, RedmondReport.com.

Posted by Doug Barney on October 22, 2008 at 11:52 AM


Featured

  • Orgs Now Getting the New Outlook for Windows

    The new Outlook for Windows 11 app is now at the "general availability" release stage for personal users, but it's also "enterprise ready."

  • Four New Microsoft Surface Devices Unveiled at Event

    Four new Surface devices for businesses were announced during Microsoft's fall hardware event.

  • Cisco To Buy Splunk for $28B

    Cisco announced it is acquiring security and IT solutions provider Splunk for about "$28 billion in equity value."

  • Copilot for Windows 11 Available September 26

    Microsoft Also announced new Copilot features coming to Bing, Edge and Microsoft 365.