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Yahoo CEO Jerry Yang
Yahoo stock trading for $17.81 Thursday morning

It seems that Yahoo thought its stock had hit rock bottom in June of 2008 when it was trading at $23.52 per share. This price was reached after Microsoft walked away from its talk with Yahoo of a buyout.

CNET News reports that Yahoo's stock has now dropped to a new 52-week low with the stock trading Thursday morning at $17.81 per share. The low stock price makes Microsoft's offer of $31 per share for Yahoo stock in February 2008 seem like a gift of the biggest kind.

With Microsoft totally out of the picture and enjoying its "independence", Wall Street is wondering if there is anything in the future that could pull Yahoo's stock out of the current nose dive. Yahoo has the controversial deal with Google pending approval with antitrust regulators, but Wall Street expects the deal to go through unfettered.

Mark May, an analyst for Needham & Co told CNET News, "A DOJ approval would be mildly positive for the stock. It has a greater than 50 percent chance of being approved, so it's already baked into the current stock price."

That means final approvals for the Yahoo/Google advertising deal would do little for the current stock price. Yahoo's third quarter closes in September and analysts expect little to come along to help the ailing search firm.

Yahoo does have another glimmer of hope in the future that could help its stock prices -- its advertising management platform (AMP). Cantor Fitzgerald's Derek Brown said, "It's unclear what impact it [AMP] will have over time. It depends on what happens with the rest of the economy. If AMP is wildly successful and it's perceived that Yahoo is taking advertising wallet share, then that could move the stock. But the possibility that will happen in the short-term seems very low."

CNET News notes that a few other Yahoo moves could help its stock price to some extent including the sale of investment in Yahoo Japan, selling Chinese search site Alibaba, or buying back its own shares.

Steve Weinstein of Pacific Crest Securities notes, "All of these things could potentially happen. But the question is: can they execute going forward and take share in a meaningful way from Google, MSN, or anyone for that matter?"

Many will wonder where the 52-week low stock price sits with Carl Icahn. Icahn was perhaps the most vocal Yahoo stockowner to condemn Yahoo and its board for not taking the Microsoft offer. Icahn had previously vowed to end Yahoo CEO Jerry Yang's days at the helm of the search firm.

Icahn rallied shareholder support to elect a new board and out Yang and Yahoo chairman Roy Bostock. To quell the internal strife, Yang and Bostock cut a deal with Icahn that would give Icahn a seat on Yahoo's board of directors and expand the board by two members with nominees from Icahn in the running for the slots.

Ironically, the deal given to Icahn by Yang and Bostock came after Yahoo executives lashed out saying that Yahoo would not be bludgeoned by Microsoft and Icahn.



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Raise your hands if
By ChronoReverse on 9/4/2008 2:34:20 PM , Rating: 5
you're not surprised by this at all.

I can't understand what the Yahoo execs were thinking assuming they were actually doing what they were supposed to be doing.




RE: Raise your hands if
By FaceMaster on 9/4/08, Rating: -1
RE: Raise your hands if
By Ringold on 9/4/2008 3:18:44 PM , Rating: 5
The whole Dow was down 320 a minute ago, S&P 33, but even still, a look at a chart reveals YHOO's collapse has been steady. Today's market just pushed it along a wee bit.

I love seeing this, I really do. When a company makes such a big mistake, I think my inner barbarian comes out, and I'm not fully satisfied until heads are on sticks. Any fanboys that bought the stock up in the 20s have just had their retirement plans pushed back, and I can't imagine Yang being allowed to survive for too long.


RE: Raise your hands if
By daftrok on 9/4/2008 4:21:50 PM , Rating: 1
Simply put, you can't compete with all this:
http://www.google.com/options/

You can try (and they did) but you won't get very far.


RE: Raise your hands if
By Master Kenobi (blog) on 9/4/2008 4:55:50 PM , Rating: 2
Yahoo = Titanic


RE: Raise your hands if
By sprockkets on 9/4/2008 7:21:47 PM , Rating: 5
"Better to die standing than to live on your knees."


RE: Raise your hands if
By jtemplin on 9/4/2008 7:59:21 PM , Rating: 3
Es mejor morir de pie que vivir de rodillas.


RE: Raise your hands if
By silversound on 9/4/2008 7:05:39 PM , Rating: 1
Most of the stocks now are in their 52 week lowest point, why always pick on yahoo?
I can see yahoo is only getting weak in the US, outside US still very strong...


RE: Raise your hands if
By someguy123 on 9/5/2008 12:01:47 AM , Rating: 3
because they could have had $31 per share, but they demanded ridiculous severance packages AND i think it was $38 per share.

it's always fun to see someone get offered an amazing deal, only to get (in this case) INSANELY greedy and then have their company's value slowly plummet into oblivion. nothing is quite as satisfying to your inner sadist than to see someones greed screw them over.


RE: Raise your hands if
By JustTom on 9/5/2008 12:09:23 PM , Rating: 3
Most stocks are at 52 week lows? More than half? Really...


Yahoo's management was just plain irresponsible
By Delegator on 9/4/2008 3:14:25 PM , Rating: 5
Hey, I understand not wanting to be acquired by a competitor -- I went through it myself at one point. But, Yahoo! management was simply irresponsible in rejecting the Microsoft offer. Yahoo! offers nothing that others don't do as well or better, and they don't have a business model that has a hint of delivering sustainable growth.

They had their shot at cashing out big, and they blew it for their shareholders and for their employees.




By zpdixon on 9/4/2008 4:04:10 PM , Rating: 1
quote:

Yahoo! offers nothing that others don't do as well or better

This is not true. Most analysts agree that Yahoo's Internet business is in a better shape than Microsoft's. For example MS's search business is a distant number 3, behind Google and Yahoo.


By SanLC504 on 9/4/2008 5:11:36 PM , Rating: 2
The only problem with that logic is, have you ever used Yahoo's Operating System? Or Yahoo-branded computer hardware? Or the Yahoo Y-Box 360? Microsoft is simply much more diversified than Yahoo.


By mindless1 on 9/4/2008 11:09:48 PM , Rating: 2
That has nothing to do with the topic though. We could say many large companies, even those smaller than Yahoo are more diversified and that too wouldn't be relevant.


By Regs on 9/5/2008 8:52:00 AM , Rating: 2
What do you mean small businesses?

I figure the main benefit of being diversified is if one product tanks, you can cut back production or resources and concentrate on the one product that is selling. This brings profit or sustainability which makes stock holders happy.

I don't see your argument very clear.


By mikefarinha on 9/5/2008 12:05:09 AM , Rating: 4
The trend is more important.

I'm assuming here, but I believe that MS Search is on the rise while Yahoo's search is on the decline, that is more important to stock prices than who is better than who at any given point in time.

I still contend that the only reason MS wanted Yahoo! was to get them out of the way... Yahoo! is like a slow road hog in the fast lane, Microsoft is unable to get around them because they are so entrenched.

MS can wait it out to pass them, or buy them and take them off the road... or what looks like an ever increasing option, stir the pot to make them implode.


By Delegator on 9/5/2008 11:24:56 AM , Rating: 2
I didn't say that Yahoo! offers nothing that Microsoft doesn't do as well or better, but that others don't do as well or better. Those others include Google, social networking sites, shopping sites, and so on.

Many internet companies are collections of "stuff": search, shopping, mail, news, and so on. If you don't have a differentiator -- something you do flat out better than everybody else -- then you don't have a viable business. Google simply owns search. Microsoft owns the desktop. Amazon owns (to some extent) shopping. Ebay owns auctions. What's Yahoo's niche? What's its differentiator? Why should its stock price do anything but fall?


Now their name makes perfect sense.
By mikefarinha on 9/4/2008 2:50:56 PM , Rating: 1
So tell me again Yahoo! fanboys... why is Yahoo!'s stock worth $40?

In all seriousness, with the right vision and leadership Yahoo! could rebuild it's self into something formitable. However with Yang at the helm it's going to be a long ride down a short slide.

Yahoo! has little near-term positive's and zero long-term positives. I can't see a future where Yahoo!'s stock will ever reach the $31/share asking price of Microsoft let alone the $40/share they were asking for. In fact, I can't see their stock going anywhere but down at this juncture.

They really need an ace up their sleeve or some M$ knee pads to do some serious M$ groveling.




RE: Now their name makes perfect sense.
By whiskerwill on 9/4/2008 3:53:47 PM , Rating: 5
There's no such thing as a "Yahoo fanboy". Except for the executive board that is.


RE: Now their name makes perfect sense.
By MonkeyPaw on 9/4/2008 5:26:22 PM , Rating: 2
Yeah, I have a Yahoo email account and participate in numerous Yahoo fantasy sports leagues, but I'm no fanboy. I do like Yahoo's news page, and their sports section is way easier to navigate than, say, ESPN's ridiculously busy website (ESPN.com alone killed dial-up). Even so, I could find replacements for all of those things on the web. I guess that's what happens when you have lots of choices, and all of them are free.


By 67STANG on 9/5/2008 1:50:30 AM , Rating: 2
Exactly. I don't think I've even been to Yahoo's site outside of AOL's browser. That was when they were both the "biggest players". (Circa 1995)

After that, I found Altavista... then moved straight on to Google.


By hrishi2das on 9/4/2008 6:10:20 PM , Rating: 4
I dunno if this is even relevant here, But recently I had a bad experience with yahoo small business (domains).

I have had my domian at yahoo for 3 years with the price increasing a little every year (from 2$ to 9$). Suddenly I get a notice that this year it will increase to $35. Since website is a personal webpage and a casual thing, I did not want to spend that much.

So with 2 months to go, I transferred the domain to godaddy for ~$6 per year. Everything went smoothly and I started managing the domain from godaddy.

I had forgotten about all this when all of a sudden on my renewal month, I get billed for $35. So I call Yahoo customer service 1 day after I am billed that amount and tell them that I have transferred my account more than 1 month back and yet I am billed. They tell me that they cant do ANYTHING about it. because it was already charged, they dont do refunds. They even say its my fault. They said that I should have called them up to tell them NOT to charge my card after I had done the transfer. I Told them, why the heck would you charge my card even though my domain has been transferred.. Was I paying for NOTHING? They were not ready to listen to anything. They were repeating the same thing that they cant do anything.

At this time I am shocked, I thought calling them up and asking them would be a simple affair, as Yahoo being such a huge company definitely would have good customer service. I didn't know what to say and said ok let me talk to supervisor or someone and escalate the issue. They said they will get back to me. I said that I was very disappointed and if this is how they treat paying customers, they will lose a lot of them. I even let them know I will write to consumerist or BBB.

After all that I called my credit card company, told them what happened. They recommended me to file a dispute and they refunded the money.

I actually pay for a Yahoo Flickr pro from the last 4 years. and now this will make me cancel that next year.

What is the reason for this whole post which almost resembles a rant... well you guys decide. I thought it is relevant to share my experience and let my disgust for this company out.




By mikefarinha on 9/4/2008 6:30:26 PM , Rating: 2
Well, I'm no big fan of Yahoo! but this is a pretty common stance for most companies that provide revolving paid services.

For example, when I was younger I'd subscribe to game magazines and i would send a check in every year. When I decided to cancel I simply didn't send in the renewal money... lo and behold I'd still get the magazines along with notes saying that my account was past due. I ignored them and eventually got sent to collections.

In turn I would actually end up doing the same thing when I was tech/customer support at Earthlink. The problem is is that when you sign up for service you agree to contact the service provider when you want to cancel. The lack of payment doesn't automatically mean the customer wants to cancel the service. Perhaps they forgot to pay or perhaps they're waiting for their pay check to send in the payment.

So you have to ask yourself if you'd be more angry at Yahoo! if you forgot to send in a payment and then imediately have your service cutoff until they recieve a payment.

In your situation, yeah it sucks to be you, but the alternative is much worse customer service.


By cessation on 9/4/2008 9:29:18 PM , Rating: 3
No it's not common for what happen to him. He was using yahoo as a domain name registrar unless I'm mistaken. In his case he moved his domain somewhere else yet he was still charged for the domain. I've used about ten different domain name registrars and not one has ever done that to me.

In your case, you got the magazines, you had a subscription. In his case he got nothing and was charged for it.


umm.
By Totally on 9/4/2008 7:15:30 PM , Rating: 2
second paragraph, last sentence. is that correct or should it be:

...but Wall Street expects the deal to not go through unfettered.




RE: umm.
By mindless1 on 9/4/2008 11:13:14 PM , Rating: 2
It's correct, look at the context in the adjacent text.


I feel compelled to...
By Motoman on 9/4/2008 3:26:21 PM , Rating: 3
...quote myself from a previous Yahoo article...

quote:
These yahoos (heh) on the board have royally stuffed themselves, and the company. The shareholders have every right and absolutely should toss all the board members out on their dumb asses...the boards "options" at this point amount to precisely #@$%-all. I have no love for Microsoft, but screwing up that purchase offer is one of the all time greatest business blunders. Sheer stupidity...if I was a shareholder, I'd be incandescent with rage. Since I'm not, I can just point a finger and giggle. I predict that Yahoo will flounder for a few years, watching it's value plummet (both financially and socially) until such point as it's split up and sold off at pennies on the dollar to the only 3 people left at that point who still think it has anything worth pennies on the dollar. I see no way that Yahoo can ever recover from this. They're a portal and a search engine...which unfortunately for them is absolutely not unique - they're a commodity, and if Yahoo isn't around there's any number of other portals/search engines that people will use with no loss of functionality whatsoever.


From this article: http://www.dailytech.com/Yahoo+Considers+Its+Optio...

Seems to me this is just the obvious starting to happen. Yahoo=effed.




Business is business.
By Alias1431 on 9/4/2008 2:36:49 PM , Rating: 2
Too bad, so sad.




Yang....lol
By nevermore781 on 9/4/2008 2:57:25 PM , Rating: 2
Laugh. Yahoo! has fallen so far, its actually quite sad. Being an ex-Yahoo! though and leaving due to the sheer lack of quality management at Yahoo!, i do kinda find this funny. This just reinforces the fact that some great changes need to be made internally at Yahoo! in order to get back in the game. Yang should give it up as CEO and go back to the engineering department like Filo did.




By Darkk on 9/5/2008 3:10:47 AM , Rating: 2
The board members of Yahoo! better hurry up and make changes now before it finally hit rock bottom.

Microsoft was generous on their buyout offer on two occasions and got turned down. Now, it won't happen again as the value of the company sunk too low to be worth it.

I remember during dot.com days I had to pay them over $200 or so to be in the top search engine for my business website. Although it didn't help me much but at the time it was part of advertising to get results and Yahoo took advantage of it.

Now times have changed due to several search engines and stiffer competition to get your attention.

I am not a big fan of Microsoft but they are like borgs, "Resistance is futile... you will be assimilated." Yahoo! did resisted but it was not in their best interest by completely saying no to everything. The CEO could have negotiated a deal that Microsoft wouldn't have to buy them out completely.

Now Microsoft dropped the Yahoo! buyout and spending money on advertising. Notice they are now offering you money to use Microsoft's search engine? Personally, they are better off spending money on making it better instead of waving a carrot in front of my screen.




Burn Baby Burn!
By techhappy on 9/6/2008 2:41:06 PM , Rating: 2
All I can say is burn baby burn. This is what happens when greed goes too far.




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