Frogman

Yahoo Rejects Microsoft’s Bid

Ice: I see your point but disagree because the difference is that when you go shopping for a car you have countless alternatives. Yang has one REAL buyer (with cash and credit to do a deal in this economic climate) GOOG can't for obvious reasons and the dark cloud over all of this is the economy which will ultimatly limit the buyer pool. A tight credit market and the down draft still to come from the housing bubble is at hand and I can assure you that MSFT is in no hurry. They have waited over a year already.... So now Yang has "rejected" one of the only real buyers (from a cash and credit standpoint) in the market. GOOG foolishly is screaming anti-trust so if YAHOO teams with GOOG do you think MSFT won't say the same thing? (GOOG should have kept their mouths shut) If I were Yang I would have slow played MSFT and GOOG to get the sweetest deal without a "rejection"...again I don't feel Yang is in a position to call anyones bluff... So now that Yang has said "NO" if I were MSFT I would tell Yahoo to 'pound sand' and turn Yang over to his shareholders to get eaten alive after Yahoo's share price plummets....(If I were a shareholder I would be out now!) --- GOOG's position--If GOOG trys to cut a deal with Yang, MSFT will fight it and it will either blow up or be in court for years. Also GOOG could certainly now take advantage of YAHOO, since I believe MSFT will not counter, putting YAHOO in an even worse position and now at the mercy of the very people that have destroyed Yahoo (GOOG) (Oh interesting how GOOG never mentions that)....along with Yangs help of course. Either way Yang will still have to face disappointed shareholders who will then be in full on "witch hunt" mode with axes and torches! Bottom line: considering the economy, credit maket, Yangs performance so far he was in no position to 'blow out' any deal and this posturing is plain stupid!!!! Keeping everyone at the table was the best option and ultimately the shareholders will be the one to suffer. I would have rather Yang announced that they are considering several offers which may have prompted more buzz and showed that he was calculating his risks and taking his time to evaluate the fate of his company. If I were a shareholder as Steve Miller said...."take your money and run"...I hope I am wrong but Yang hasn't done anything to date to lead me to think otherwise...

Yahoo Rejects Microsoft’s Bid

THIS IS HUGE NEWS and risky for Yahoo's CEO!!! He has destroyed the value of the company and everyone is aware of this fact. The only alternative that he has (which probably has been worked out already) is to partner with GOOG. He is NOT in a position to play games and he will have a small 'coup' on his hands if he doesn't come out with something this week!!! Shareholders won't stand for more poor guidance look for lawsuits if nothing happens. I have a feeling a deal with GOOG has already been reached in principle (Very speculative just a gut feeling considering the situation and the fact that he is 'under the microscope')...the play is buy Yahoo on a pull back (if any) as well as pick up some GOOG...either way an interesting week for the Nasdaq to come...