jhcmal

Why Jerry Yang Needs To Drive a Beer Truck

Well, the result is against most people’s expectation. But rethink about the different corporate cultures the two companies have, it is not hard to realize this possible outcome. Sounds a hindsight? Yes, it is.

Ballmer ’s hardball playing at the beginning and “microsofteded ”his stance to sweeten the deal to $33 later and finally gave all up, all proved that Ballmer was not a good dealmaker or negotiator and might have taken a myopic view.

Was it due to his personality or due to culture issue? Maybe both. MSFT shareholders may take a deep relief for the short while YHOO’s may take a hit. But Keep in mind, the market is to reflect a company’s long term value instead of the short eventually.

Ballmer said MSFT can go forward without YHOO. Hope he is right or he may have made a big strategic mistake by walking away as time waits for no one.

Steve Ballmer Doesn't Need To Go

Well, the result is against most people’s expectation. But rethink about the different corporate cultures the two companies have, it is not hard to realize this possible outcome. Sounds a hindsight? Yes, it is.

Ballmer ’s hardball playing at the beginning and “microsofteded ”his stance to sweeten the deal to $33 later and finally gave all up, all proved that Ballmer was not a good dealmaker or negotiator and might have taken a myopic view.

Was it due to his personality or due to culture issue? Maybe both. MSFT shareholders may take a deep relief for the short while YHOO’s may take a hit. But Keep in mind, the market is to reflect a company’s long term value instead of the short eventually.

Ballmer said MSFT can go forward without YHOO. Hope he is right or he may have made a big strategic mistake by walking away as time waits for no one.

Yahoo's Tough Week Ahead

Well, the result is against most people’s expectation. But rethink about the different corporate cultural backgrounds the two companies have, it is not hard to realize this possible outcome. Sounds a hindsight? Yes, it is.

Ballmer ’s hardball playing at the beginning and “microsofteded ” its position to sweeten the deal to $33 later and finally gave all up, all proved that Mallmer was not a good deal maker and might have taken a myopic view.
Was it due to his personality or due to culture issue? Maybe both. MSFT shareholders may take a deep release for the short while YHOO’s may take a hit. But Keep in mind, the market is to reflect a company’s long term value instead of the short eventually.

While Ballmer said MSFT can go forward without YHOO, I hope he is right or he may have made a big strategic mistake by walking away as time waits for no one.

The Worst Trade Of All Time

The Fed dusted off a Depression-era rule to let securities firms borrow directly from the Fed through its "discount window."
This decision was announced along with the Fed's promise to underwrite J.P. Morgan Chase & Co's (JPM) takeover of Bear Stearns for the rock-bottom price of $2 a share.

Excerpt from Reuters update - March 20, 2008 9:17 AM ET

The Fed’s first move to bail out BSC late last week was done through JPM as a duct to its discount window. Then, over the weekend, a drastic move was taken that BSC was sold at a fire sale price of $2 per share to JPM.

The Fed’s fear of domino effect (system risk) was obvious and understandable, nevertheless, the drastic move confused most people, particularly shareholders of BSC.

It seemed that the Fed could continue providing liquidity to BSC, if its intention to bail out BSC remained the same, while opened up its discount window directly to securities firms in the meantime. By doing do, the fate of BSC could be totally different. Unfortunately, we had the opposite outcome which could produce more disturbing litigation issues in the future.

However, JPM is apparently the winner of the deal in view of its share performance the days after. The question remains is that were there reasons so that BSC must be chopped away quickly while other securities firms were allowed to access to discount window directly?