Posted by mikeb on April 28, 2008
So as many of you are aware, those that pay attention to the markets anyhow, the deadline for the buy-out offer from Microsoft has passed. Yahoo! is still standing firm saying they are worth at least $40 a share.
Now here is my Rant!
Is Yahoo! in the know on something the rest of the market AND regular day people like you and I have no clue about? Is Microsoft really undercutting and driving down Yahoo!’s value? To answer these questions I guess we would want to see how Yahoo!’s stock has performed for the past 3 years right? Okay lets do that:
Okay so we see on the chart that the last time they even SAW a $40 price per share ($40.23 actually) was in November 2005. Perhaps I haven’t looked far enough back right, you know to see the gem of a deal they think they are? Lets go back 5 years now. Nope, November 2005 is still the best at $40.23). Wow, I must really be missing something here. Let’s think about this for a moment even if I was to look back and try and see where they are coming from going back 10 years I still don’t see where they think that they can make $40 per share or more in the near (say 3 years) future? Yes before and briefly into 2000 they did well. As we all remember (and sorry if I make you shudder) the .com bust of our age revalued Yahoo! Since June of 2006 Yahoo! has been unable to break and run up to $35 per share. Seriously the offer from Microsoft was a fair one.
Now they are faced with a hostile take over or a steady decline for some time. Should have taken the offer, Beavis.