June 13, 2008 Comments

Yahoo! Blows the Deal

Well, it’s official. Yahoo! has blown the deal with Microsoft. Yesterday afternoon before the official announcement was made, it was obvious that the cat was already out of the bag. Many stories began to break about the deal falling through, and Yahoo! shares dropped over 10%. The stock value had topped at around $30 in the middle of February. Since then, Jerry Yang and the rest of the Yahoo! leadership have managed to wipe nearly $9 billion in market value, as it became more and more apparent the deal wasn’t going to happen.

I have no doubt that the class action suits will continue and there will most certainly be more to come. Unfortunately, I do not believe anything good can come of them, as the damage has already been done. It may be a very long time before Yahoo! ever reaches $30 again, unless they can actually make good on the promises that were made in March.

Time for Microsoft to Go Hostile

Yahoo! Attempts to Increase Market Value with Investor Presentation