Yahoo Ends All Talks With Microsoft, Shares Plunge

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Yahoo shares plunged more than 13 percent after the company announced it has ended all talks with Microsoft. On the flipside, Microsoft’s shares were up on the news.

The development, announced Thursday, is expected to lead to an advertising partnership between Yahoo and another rival, Internet search leader Google. That alliance is expected to be announced after the stock market closes.
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You'd think Google and Yahoo alliance would invoke some sort of anti-trust rule?

Yahoo should have just sold to Microsoft and been done with it. They offered more than Yahoo was worth the first time.
 
They're not even worth what they're at right now... Besides people still stuck on their email addresses and instant messenger, they don't have much.
 
yeah, they were nuts for not selling...

however this probably is actually at a benefit to microsoft. I think it would be a pretty long term investment to have yahoo actually have been a moneymaking worthwhile endeavor
 
Looks like they have done a great job digging their graves. Everything looks square, dept looks good. Yup, mighty fine job they have done.They have even already got their caskets already done in there ready for them. :)

They keep going on and on about a google alliance. In my opinion if Google wanted one they would have formed one already. Why would Google want to help them out? They wouldn't get anything out of it. If Yahoo fell then they would only have to worry about Microsoft.

After this I'm pretty sure that most of the shareholders will be behind Ichan's desire to remove the board. Now would be a good time for them all to start getting their resumes ready.
 
Hoop said:
They're not even worth what they're at right now... Besides people still stuck on their email addresses and instant messenger, they don't have much.
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What they're really "worth" in the future is an unknown (that's the fun of the stock market since it is based on potential). What they do still have is ad revenue, and they reported good earnings last quarter.

Personally, they killed The All Seeing Eye game browser (still the best ever) after buying them years ago and I'll never forgive them for that. :) That said, I have a hard time buying that this is a company that is truly in a death spiral. All this pressure comes from the fact that the stock market is in the crapper, the economy is a mess, and Yahoo is in the gunsights of companies that have more money and shareholders who are freaked out.

We'll see what happens.
 
Exavior said:
They keep going on and on about a google alliance. In my opinion if Google wanted one they would have formed one already. Why would Google want to help them out? They wouldn't get anything out of it. If Yahoo fell then they would only have to worry about Microsoft.
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"The enemy of my enemy is my friend", I'd assume that is the logic there. And given Microsoft's past history in dealing with other companies, the last thing Google would want to do is to remove another obstacle for them. Microsoft is a very distant third place behind Google and Yahoo in ad revenue from searching, and Google will do everything it can to keep Microsoft down there. This includes keeping the other competition in the game.

After this I'm pretty sure that most of the shareholders will be behind Ichan's desire to remove the board. Now would be a good time for them all to start getting their resumes ready.
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75% of Yahoo is held by financial institutions. Individual investors are going to do squat unless they can either get them on board, or collectively buy up those billions in shares (never gonna happen).
 
<thumbs up> Yang!!!

Yang's decision will be reflected in a LOT of Text books for next few yrs.
 
Serpico said:
What they're really "worth" in the future is an unknown (that's the fun of the stock market since it is based on potential). What they do still have is ad revenue, and they reported good earnings last quarter.

Personally, they killed The All Seeing Eye game browser (still the best ever) after buying them years ago and I'll never forgive them for that. :) That said, I have a hard time buying that this is a company that is truly in a death spiral. All this pressure comes from the fact that the stock market is in the crapper, the economy is a mess, and Yahoo is in the gunsights of companies that have more money and shareholders who are freaked out.

We'll see what happens.
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Agreed. One thing about ad revenue is... ad blockers. I haven't seen an ad in ages, and I'm sure that applies to a lot of other literate comp users. I'm sure just as popups got invasive and people looked for a way to stop them, same thing will happen with their regular ads. It's just a matter of time before the mass market starts blocking ads.

I think Google will have the same issues, but I believe they've foreseen that and that's why they're trying to diversify into tons of other niches.
 
Hoop said:
Agreed. One thing about ad revenue is... ad blockers. I haven't seen an ad in ages, and I'm sure that applies to a lot of other literate comp users. I'm sure just as popups got invasive and people looked for a way to stop them, same thing will happen with their regular ads. It's just a matter of time before the mass market starts blocking ads.

I think Google will have the same issues, but I believe they've foreseen that and that's why they're trying to diversify into tons of other niches.
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You know, I never "got" revenue from those Google ad banners which is why I never invested in the company, even as they blew the doors off of estimates with every single quarterly earnings report.

I still don't get it and it's kept me out of some good stocks. Oh well. :)
 
Serpico said:
I still don't get it and it's kept me out of some good stocks. Oh well. :)
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That's okay, if you don't know what it is you should stay out of it. I did only because I thought it too risky myself. Same with Apple. If Jobs dies in a freak accident or one of the Goog CEO's then their stock will rock bottom. I know your supposed to invest as if those things never happen, but.......

I don't know who Yahoo thinks they are though. They're a small player now. They should have been bought. I don't own Yahoo stock, and glad I don't.
 
Good for Yahoo for dodging that tyrannical monopoly, they can take their monopoly money with them on their way out. So far they haven't posted any quarterly losses, I dont see this problem you are all having with yahoo. I dont use them, but they keep posting profits and not losses, so wtf is up with ya'll?
 
The Red said:
Good for Yahoo for dodging that tyrannical monopoly, they can take their monopoly money with them on their way out. So far they haven't posted any quarterly losses, I dont see this problem you are all having with yahoo. I dont use them, but they keep posting profits and not losses, so wtf is up with ya'll?
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They're getting left in the dust by Google. They might be doing ok now but their outlook is pretty grim, at least in my eyes.
 
Shotglass01 said:
That's okay, if you don't know what it is you should stay out of it. I did only because I thought it too risky myself. Same with Apple. If Jobs dies in a freak accident or one of the Goog CEO's then their stock will rock bottom. I know your supposed to invest as if those things never happen, but...
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Yeah, that is definitely one of the risks in companies where the CEO is so integral to the company. Lots of CEOs are interchangeable these days but people like Jobs, Page, Brin, and Scmidt aren't, and their stock would get hammered if something happened to them. That said, unlike Google I "get" Apple's business and their operations. They run the tightest ship in the PC hardware business, have solid profit margins, continue to grow their customer base in separate areas (computers, media, music, and now handsets), and have a 20 billion dollar war chest. That's easy for me to get. :) The other large caps I have that have done about as well for me are Mastercard and Nintendo, both of which also share a lot of those traits in common.

I could mention my small caps or stock options but that's cheating. :)
 
What a bunch of morons.
If I was a shareholder, I'd be pretty pissed off about that...

That whole "personally accountable" thing comes back to mind...
 
Serpico said:
75% of Yahoo is held by financial institutions. Individual investors are going to do squat unless they can either get them on board, or collectively buy up those billions in shares (never gonna happen).
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The financial institutions and the like are the ones most likely to be pissed. They rely on the stock to do well and for the company to make sure the stock does well. They have retirement accounts and the like to worry about and they can't afford to have their customers pissed off at them. Therefore, they are going to have more of a backlash against them due to their customers rather than the average joe with a few shares.

 
SmokeRngs said:
The financial institutions and the like are the ones most likely to be pissed. They rely on the stock to do well and for the company to make sure the stock does well. They have retirement accounts and the like to worry about and they can't afford to have their customers pissed off at them. Therefore, they are going to have more of a backlash against them due to their customers rather than the average joe with a few shares.
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I see this point but again, we will see. The thing about financial institutions is that they either hold stocks long term, therefore taking a longterm view of price. Several institutional analysts have come straight out and claimed that in several years the value of YHOO could be worth more in the long term than the stock exchange for MSFT shares. Others use their positions trading in the short term, writing options contracts on them or making money on the spread by selling shares short and buying back long (screwing the little guy who doesn't know WTF in the process).

Their goals are different from the individual investor. Again, what you said may be right but recognize that holding a large cap stock has other benefits and goals to them as well. I would put the odds of an institutional mutiny to be much lower than with individuals.
 
BTW, those guys make a mint writing options contracts, it is such a racket.
 
Blame for everything goes squarely on the board's self-preservation...
Again, for me, "personally reliable".

Class action lawsuit would sure make me feel that justice had been served ;)
 
Serpico said:
I see this point but again, we will see. The thing about financial institutions is that they either hold stocks long term, therefore taking a longterm view of price. Several institutional analysts have come straight out and claimed that in several years the value of YHOO could be worth more in the long term than the stock exchange for MSFT shares. Others use their positions trading in the short term, writing options contracts on them or making money on the spread by selling shares short and buying back long (screwing the little guy who doesn't know WTF in the process).

Their goals are different from the individual investor. Again, what you said may be right but recognize that holding a large cap stock has other benefits and goals to them as well. I would put the odds of an institutional mutiny to be much lower than with individuals.
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Yes, it is true that it COULD be worth more. But with the current board I doubt it would go that direction. They have been losing money, not making it. With a new board in place, one that could actually make money, then yes they could turn around and start to make the shareholders a good amount of money over the next few years.
 
Exavior said:
Yes, it is true that it COULD be worth more. But with the current board I doubt it would go that direction. They have been losing money, not making it. With a new board in place, one that could actually make money, then yes they could turn around and start to make the shareholders a good amount of money over the next few years.
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No doubt that's where we are going.
"Personally accountable" describes this exactly, for me...

I wouldn't be a bit surprised if class action lawsuit came about on behalf of all their shareholders.

One of two things will happen:
1) New Board... Yahoo recovers.
2) Stocks tank under current board because of their shit... Yahoo falls.
 
Exavior said:
Yes, it is true that it COULD be worth more. But with the current board I doubt it would go that direction. They have been losing money, not making it. With a new board in place, one that could actually make money, then yes they could turn around and start to make the shareholders a good amount of money over the next few years.
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Not true, their last quarterly earnings report (in the middle of a financial crisis) was very good. I suspect that this is why a lot of these institutions are making these comments on long term potential. The question is if they can sustain growth, but we'll see.
 
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