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Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

nytimes.com

61–70 of 135 posts

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#61

Earlier quoted context omitted.

As a consumer, it might make sense to say this. From a business perspective (he says having no business experience or expertise), Yahoo is a collection of assets: Code, people, branding, community. They aren't in first place, and they aren't profitable at the moment, but I think the case that they have zero or negative value is a bit simplistic. Put it another way: Would you rather throw a pile of money at trying to…

Yes, of course it has some teardown value. Billions in Ali Baba stock if nothing else. But that's not what you're suggesting - doubling down by doing more of what they've been doing. This assumes that what they're doing has some useful foundation you can find and build on. There are essentially zero Yahoo users, especially of any service that's remotely monetizable. People who use Yahoo are people whose ISP set it as…

> Billions in Ali Baba stock if nothing else.

My understanding is that's the one thing that is not up for sale these days, and that all relevant discussions are regarding the spinoff of their core web businesses.

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#64

Buffett is no fool. Berkshire is providing the financing to Dan Gilbert's group and will receive guaranteed interest as well as an option to convert to equity. I'm sure that financing is jammed packed with warrants and covenants. Buffett has basically parlayed the prestige of his name into sweetheart deals with provisions that no other company could get (eg. his investment in Goldman Sachs).

But who cares about yahoo? (Serious question) yahoo should just die. Please tell me why it shouldn't

Because this is why: List of Yahoo!-owned sites and services https://en.wikipedia.org/wiki/List_of_Yahoo!-owned_sites_and...

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#65
post #52

Looking forward to a redesign of Yahoo! to match Berkshire Hathaway's website: http://www.berkshirehathaway.com/

I've always loved CAA's website (the most powerful agency in Hollywood).

http://www.caa.com/

At a certain level, you don't really need a website.

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#67
post #39

This is Buffett, so he must be thinking about this in terms of business, not tech. Maybe they have calculated they could break Yahoo up and sell the pieces for more than they bought as a whole? Otherwise I'm out of ideas.

closet indexing.

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#69

Buffett is no fool. Berkshire is providing the financing to Dan Gilbert's group and will receive guaranteed interest as well as an option to convert to equity. I'm sure that financing is jammed packed with warrants and covenants. Buffett has basically parlayed the prestige of his name into sweetheart deals with provisions that no other company could get (eg. his investment in Goldman Sachs).

It's probably not just the sheen of his name. A very large, wealthy, & motivated investor can be an asset. I vaguely remember an old story about him; one of his companies was having trouble with their paper vendor. He found out, and promptly bought the paper vendor. Problem solved.

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#70
When I consider Yahoo's value, I think of email, fantasy football, news, and tumblr. All four seem to be struggling when compared to their alternatives, but each of the products appear to have great potential value. It's hard to determine the quality of Mayer's work as CEO; some decisions were good, some look bad. I'm not confident she is a product person, and this is based on her management of Tumblr and the lack of development in email functionality and UI.

I could be wrong. I do go to Yahoo news everyday and it's not a bad service. It's fun to think about what the world would be today if Yahoo acquired Facebook LOL.

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