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Print 22 comment(s) - last by fummiddler.. on May 11 at 2:41 PM

Everything is going to be alright, everything is going to be alright...

The Yahoo and Microsoft saga ended not with a bang, but with a whimper.  After Yahoo boldly rejected Microsoft, the Redmond-based giant over the weekend decided to walk away from its game-changing offer, leaving Yahoo to ponder its hopes as an independent company.  Despite new deals with Google, Yahoo is for the most part back to its old self, for better or worse. 

This is the same Yahoo that cut 1,000 jobs just months ago.  Yahoo management is aware of the concern surrounding its decisions and the fact that more cuts may be in store on the rough road ahead.  Yahoo CEO Jerry Yang sought to address these fears and reassure employees in a corporate blog posted on Sunday May 4.  Responding to those he felt questioned the company and his employees, he argued that recent developments have shown that "those people underestimated the determination of Yahoo!’s incredible people, spirit and culture."

Yang optimistically cites in the post various new services and projects from Yahoo.  Among these is the acquisition of advertiser Maven Networks.  Other developments include the new homepage customization Buzz service, OneSearch 2.0, video on Flickr, and the female-focused news page Shine.  He also mentions the preview of the company's new comprehensive advertising management platform, AMP!, as another major show of promise.

Also cited were the launch of new Yahoo R&D labs in India and Israel.  Yang was also quick to mention the better than expected Q1 financial results.  Yang stated that these initiatives and successes helped his company reject the Microsoft offer for good.  He added, "All of this reinforced our board’s position that Microsoft’s offer undervalued our unique global franchise."

In answering questions of what's to come, Yang hinted that Yahoo will focus on creative new products and social products.  On the future Yang says:

So, what’s next? With Microsoft’s withdrawal, we’ll be better able to focus our energy on growing our industry leadership and maximizing value for stockholders. We’ll continue to execute on our plan — making your Internet experience as personal, relevant, open and social as possible, serving advertisers so well they insist on working with us, and opening up Yahoo! in a way that developers dream of. And, we’ll also continue to pursue strategic opportunities that position us for long-term success.

He acknowledged that his company will be under increased scrutiny in the near future.  Yang also insisted that Yahoo has learned from the experience and will continue to be more focused and intense, as it has the last few months.

Finally, Yang expressed some surprising remorse that a partnership with Microsoft did not work out.  He continued to state the party line that the transaction was not in his shareholder's interests, tying his hands.  "No one is celebrating about the outcome of these past three months… and no one should,” said Yang.

In all, Yang offered up strong words to his employees at Yahoo and to investors.  It should be interesting to see how well he and his company can adhere to the challenging path they have set for themselves.  Few can argue that the past few months Yahoo has been much more focused and competitive, during its attempt to ward of Microsoft and prove its mettle.  The real telling test, though, will be whether they can sustain these efforts, now that the immediate source pressure is removed.



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Missed Opportunity
By unbaisedgamer on 5/5/2008 11:52:37 AM , Rating: 5
Yahoo is out of its mind to reject Microsoft's offer.

Microsoft is out of its mind to make the offer to Yahoo in the first place. Does anyone really use Yahoo? Is it really that strong of a competitor to Google? I think not.

Microsoft would do MUCH better investing 40 billion dollars in itself and working on its own Google competitor. If it invests half that you can expect it to bury Yahoo.




RE: Missed Opportunity
By 16nm on 5/5/2008 12:02:24 PM , Rating: 4
It's not so simple as that because Yahoo have a brand going and lots of users are already 'locked in' to their services. Unless Yahoo! have a pretty big turn around, I think Microsoft will be able to pick them up on the cheap.

Microsoft certainly need Yahoo. They've not had much luck building their brand and this is why they want Yahoo's.


RE: Missed Opportunity
By ChristopherO on 5/5/2008 12:18:00 PM , Rating: 5
I feel sorry for the Yahoo employees...

Microsoft set-aside 1.5 billion for retention bonuses... That's 150,000/each for 10,000 people. That's a lot of money. I know that we aren't talking about equal splits, some would get millions, others would get tens of thousands.

However, given that the employees won't see a huge pay day, plus the fact they have a lot of stock options.... Well, they got hosed the worst of anyone in this charade. I feel sorry for them since this could have paid for their kids college education, or early retirement or whatever.

If Yang really believed in his company, he'd spread some money around as an apology, or buy a billion of stock since he apparently feels the company is so undervalued at present.


RE: Missed Opportunity
By Adonlude on 5/5/2008 1:59:22 PM , Rating: 5
I feel sorry for the Yahoo shareholders...

Shareholders just lost a crapload of money becuase of this decission and if Yang doesn't pull something suprisingly floral smelling out of his @$$ in the next few months you can rest assure he will not be CEO much longer.


RE: Missed Opportunity
By ChristopherO on 5/5/2008 2:33:29 PM , Rating: 2
Sure, I also feel sorry for them. I'm wondering how many shareholder lawsuits Yahoo is going to have to deal with.

Also, I'd be quite surprised if they don't try to oust the board themselves and elect individuals who are merger-friendly.

MS would come back to the table if invited, but round 2 wouldn't be worth nearly as much money.

Yang's plan to partner with Google is insane. Basically he would jettison all their in-house technology (and untold billions in acquisitions) to become the largest "franchisee" of the Google ad-system. Pinning all your hopes on one partner is insane.

That also permanently devalues Yahoo as a merger partner since they bring less to the table. Their profits might be up, but if they use Google for that, one might as well just partner with Google directly and leave Yahoo out of the mix.

At least that's my take. I'm sure everyone has their own opinion, but from a purely business sense, I can see absolutely no rational reason for Yahoo to have spurned Microsoft.


RE: Missed Opportunity
By crystal clear on 5/6/2008 10:10:49 AM , Rating: 2
quote:
Microsoft set-aside 1.5 billion for retention bonuses...


Well M.$. believes in.....

Experience is a jewel, and it had need be so, for it is often purchased at an infinite rate."

Also...

"The best buy by way of management is brains - at any price."


RE: Missed Opportunity
By TerranMagistrate on 5/5/2008 2:10:42 PM , Rating: 2
Maybe Microsoft should hire you since you seem to know more about MS than they themselves do...


RE: Missed Opportunity
By phxfreddy on 5/5/08, Rating: -1
RE: Missed Opportunity
By Etern205 on 5/5/2008 4:02:32 PM , Rating: 2
Isn't Yahoo serch engine powered by "Google"?


RE: Missed Opportunity
By Emily on 5/10/2008 10:06:25 AM , Rating: 2
Yahoo's has been using their own algorithm since for their search engine since ~2004. That's the change that prompted me to switch my home page from Yahoo to Google. I know a lot of people didn't like Yahoo for their 'clutter' even before that, but that did not trouble me much (and I did use some of their other services).


RE: Missed Opportunity
By hiscross on 5/5/08, Rating: -1
Yahoo's Stock Will Tell the Story
By mikefarinha on 5/5/2008 12:52:08 PM , Rating: 1
The chronology.

Jan 31 - Yahoo's Stock = $19.18/share

Feb 1 - M$ Offers Unsolicited Bid for Yahoo at $31/share
Yahoo's stock jumps to $28.38/share

May 2 - Buyout agreement deadline approaches Yahoo's stock = $28.67/share

May 5 - M$ withdraws offer Yahoo's stock = ???

----

Personally I think it was stupid of Yahoo to decline the offer. But I also think M$ is better off with out Yahoo.




RE: Yahoo's Stock Will Tell the Story
By Omega215D on 5/5/2008 1:07:46 PM , Rating: 3
as of 1:06 PM EST the price of the stock is now $24.83... As a share holder I'm pissed... and I hold quite a lot of shares from the mid 90's.


By Bioniccrackmonk on 5/5/2008 5:36:15 PM , Rating: 2
SELL!!!!


RE: Yahoo's Stock Will Tell the Story
By CyborgTMT on 5/5/2008 6:10:42 PM , Rating: 2
I'll calling you on the BS, but let's take what you said as if it is true.

You purchased 'lots' of stock in the mid-90's. Yahoo was incorporated in 1996 and for the first few years it sold for around $1 per share. It wasn't until '99-00 that the stock prices took off. So just for argument sake let's say you purchased $100 worth of Yahoo stock at a $1 a share (also to make the math easier). Since 1996 and today Yahoo has split 5 times at 2:1. Assuming you have not sold a single share over that time period you now have 3200 shares of Yahoo valued at $79,465. A nearly 80,000% increase in stock value over the life of the investment would piss me off too.....


RE: Yahoo's Stock Will Tell the Story
By DragonReach on 5/5/2008 6:41:39 PM , Rating: 2
Your math is incorrect, shares at that time traded at around $35-40 per share. The value you are seeing in charts is adjusted for the splits.

Using your figures, $100 would be 3 shares at best, with the 5 splits that gives us 96 shares, currently valued at about 2382. A very positive gain, but not near the numbers you posted. In the event that he had actually purchased say $10,000 in shares, he basically would have lost roughly $40,000 on paper overnight. No investor would be happy about that.


By CyborgTMT on 5/5/2008 8:09:01 PM , Rating: 2
Ok, didn't know the reports adjust for the splits. But still a sizable gain on the investment, just not the huge one I had thought he received.

My knowledge of the stock market isn't the best, so going by what is being shown on investment sites I just extrapolated that info.


By Omega215D on 5/6/2008 3:19:51 AM , Rating: 2
I use mid 90s which i received the stock in 97 - 98 so that should be late 90s. I sold off a good portion in 2000 and decided to hold on to the rest just in case... I also invested in plenty of other tech stocks but it's a shame I didn't get in on Google.

I still have hope for Yahoo... nothing can be as bad as my mom's AOL/ TW stock....


By phxfreddy on 5/5/2008 3:25:27 PM , Rating: 2
I think MS is going to get Yahoo for sure. Its only a matter of time. And they do need them. They need SCALE.


So basically Yang is saying he's an idiot.
By Obsoleet on 5/6/2008 8:22:42 PM , Rating: 2
That's what I gather from this, because the walls are closing in on Yahoo and they offer little real value. They are a dying dinosaur themselves buying up small companies. They would've been lucky to cash out, and been with a secure enterprise like the Microsoft regime.

You gotta know when to play your hand and when to fold. They basically played their weak hand and lost instead of folded on this one.

Good game, Yahooo!




By fummiddler on 5/11/2008 2:41:56 PM , Rating: 2
your mum didnt know when to fold last night


To summarize it all
By crystal clear on 5/6/2008 10:53:10 AM , Rating: 3
quote:
The real telling test, though, will be whether they can sustain these efforts, now that the immediate source pressure is removed.


This implies-

"He that will not apply new remedies must expect new evils."

quote:
Few can argue that the past few months Yahoo has been much more focused and competitive, during its attempt to ward of Microsoft and prove its mettle.


So....

"A good scare is worth more to a man than advice."


quote:
It should be interesting to see how well he and his company can adhere to the challenging path they have set for themselves.


Then he should note that-

"Progress comes from the intelligent use of experience."


quote:
"No one is celebrating about the outcome of these past three months… and no one should,” said Yang.


Well he missed a great opportunity because-

"If fortune calls, offer him a seat."


To conclude-

"When it comes to winning, you need the skill and the will."


As for Google he(Yang) should remember-

"Your worst enemy is always a man of your own trade."




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