Response to Ashkan Karbasfrooshan's 'Is Yahoo Is Being Prepped for Sale?'

Ashkan Karbasfrooshan writes about a potential sale of Yahoo (YHOO).

But with a market cap of $33 billion (minus $2 billion in cash) that doesn’t leave many potential buyers with enough market cap to swallow Yahoo. All the buyers/partners that are big enough, like Microsoft (MSFT) and Google (GOOG), are already competing with Yahoo, so they aren't really buyers. I think the sale could happen, but at a lower price. A potential sale/merger puts a floor on the stock, but I don’t think it provides much upside.

Disclosure: I am long YHOO and MSFT. I am short 25 and 35 strike calls on YHOO.

Comments

[Ashkan Karb...:]

I am honored you penned an official response. Let me know what you think about this:

watchmojo.com/web/blog.../

2008 Jan 04 11:38 AM