Steve Ballmer: Time To Come Back to Yahoo

The stock is $17.80. Now is the time for you to make a $24.00 offer.

Oh how foolish a $33-37 buy would have looked in retrospect, eh?

A review of the May 15th somewhat prescient call, less than just 4 months later:

Unless Ballmer is using these hedge fund players as chess pieces, this board maneuvering and shareholder 'activism' spells nothing but gigantic risk for Yahoo shareholders going forward. A perfect sell candidate. And yet, a decent buy at $11.50-$17.00 (20-30% growth for .57c of earnings) when everyone has forgotten about the possibility of a deal.

Maybe 4 months later, we will see Yahoo (YHOO) no longer trading, for a buyout price somewhere in reasonable territory: $25 or so.

Stock position: None.

Comments

[wiseguy001:]

F'ing Institutional Investors who backed egomanica YANG, dimwit Decker and A'holes on Board. Not only have they screwed their own clients but the little investor as well. EVERYONE knew/knows idiots YANG/Decker/Board would destroy investor value if they didn't accpet MSs offer.. yet the "wizards" at these funds voted in support of these clowns...How smart do they look now?? They should not only be fired but publically flogged! I hate you idiot institutional investors who voted for YANG and Co!

2008 Sep 05 11:37 AM

[techy:]

usr 71887..

MSFT has never shown interest for a complete buyout after they walked out, and thats the reason the big institutions voted for yang rather than Icahn.

with Icahn there was no other choice than sell yahoo to msft for whatever price...

but ever since then nobody has come out with a statement/plan to maximise shareholder value..which is why yahoo is melting down.

and maybe MSFT and Icahn want yahoo to go down all the way to $15, so that MSFT's $23-25 offer will look great.

2008 Sep 05 01:04 PM

[stanpok:]

Forget Yahoo! There'd be much more drama if an offer was made to buy Microsoft.

2008 Sep 06 12:56 AM

[tarigirl:]

Yahoo is a solid company with an outstanding executive team. There is no reason for them to sell the company. Icahn is looking to be in the spotlight at the investors expense. Go buy Starbucks, their stock is tanking as we speak.

2008 Sep 06 07:22 PM