It's easy to cheer on Google, as Google as they systematically takes on established vertical markets (to sell advertising) and do fairly well in some of them. Why not root for the underdog, Yahoo + MSFT?
Microsoft bids $44.6 billion for Yahoo
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Re: Microsoft bids $44.6 billion for Yahoo
#22The market is reacting very positively: Yahoo is up almost 60% in pre-market trading, at a market cap of $40B (up from $26B at yesterday's close). Microsoft is down 4% however.
The stock market continues to baffle me. Microsoft is offering $31 per share of Yahoo. YHOO is now trading at nearly $31, up from $19 at the close yesterday. Why would anyone pay $31 for a share of Yahoo right now? There are two possible outcomes: 1) the deal goes through, and you get your $31 back either in Microsoft stock or cash. No net gain. 2) The deal doesn't go through and YHOO drops back to around $19, losing…
Yes. Microsoft was down 4% on the announcement.
It's merger arbitrage.
Buy YHOO, short MSFT. If the merger doesn't go through, then sure, your YHOO stock will drop, but your MSFT stock will gain.
If you get the right proportion of long/short YHOO/MSFT, you make money no matter what happens.
(Where the "right proportion" is really complicated to figure out, and is often wrong.)
Re: Microsoft bids $44.6 billion for Yahoo
#23its a good deal for stockholders I think. If you read the hype Yahoo is not doing to great(which I find hard to believe as they make a load of cash). I think the combined search powers could be really good.
http://finance.google.com/finance?fstype=ii&q=NASDAQ:YHO...
take a look at the annual data. they may be profitable, but a 62% fall in net income over 3 years, that's pretty bad.
Re: Microsoft bids $44.6 billion for Yahoo
#24Earlier quoted context omitted.
A company that's been declining for 8 quarters in a row and trades at 40 times earnings (before the Microsoft offer) is not undervalued.
it's rare to see such simple, fundamental and spot on analysis in the tech world. microsoft's bid on yahoo is a perfect illustration of why microsoft is doomed to failure. how many startups could they fund with $45 billion? 100? 200? 1000? why exactly do they want to be at the helm of a slowly dying web portal left over from the first dot com boom? i remember someone talking of microsoft and relating their situation…
>> how many startups could they fund with $45 billion?
100? 200? 1000? why exactly do they want to be at the helm
of a slowly dying web portal left over from the first dot com boom?
Re: Microsoft bids $44.6 billion for Yahoo
#25Earlier quoted context omitted.
A company that's been declining for 8 quarters in a row and trades at 40 times earnings (before the Microsoft offer) is not undervalued.
it's rare to see such simple, fundamental and spot on analysis in the tech world. microsoft's bid on yahoo is a perfect illustration of why microsoft is doomed to failure. how many startups could they fund with $45 billion? 100? 200? 1000? why exactly do they want to be at the helm of a slowly dying web portal left over from the first dot com boom? i remember someone talking of microsoft and relating their situation…
First Yahoo messenger and MSN messenger joined networks. This was a reasona next step. yahoo is not completely worthless. In many parts of the world Yahoo dominates the IM market and in email Yahoo and Microsoft have a much bigger market share worldwide. yahoo also owns sites like Flickr and Delicious, both of which are better than their Google counterparts.
yahoo also has deals to provide email for many ISPs in the US.
I think Microsoft could benefit from the increased market share in many areas.
Re: Microsoft bids $44.6 billion for Yahoo
#26Earlier quoted context omitted.
it's rare to see such simple, fundamental and spot on analysis in the tech world. microsoft's bid on yahoo is a perfect illustration of why microsoft is doomed to failure. how many startups could they fund with $45 billion? 100? 200? 1000? why exactly do they want to be at the helm of a slowly dying web portal left over from the first dot com boom? i remember someone talking of microsoft and relating their situation…
>> how many startups could they fund with $45 billion? 100? 200? 1000? why exactly do they want to be at the helm of a slowly dying web portal left over from the first dot com boom? I understand the "startups are king" mentality around here, but come on . Regardless of their quarterly performance, Yahoo! is one of the biggest brand names on the web. Microsoft won't establish a bigger web presence by "funding startups…
Exactly. When companies get as big as MS, they need big wins. Big companies never seem to be interested in or capable of managing and dealing with lots of small deals - perhaps it would be too much of a hassle chasing a lot of small fry even though a few will eventually take off.
Re: Microsoft bids $44.6 billion for Yahoo
#27Earlier quoted context omitted.
it's rare to see such simple, fundamental and spot on analysis in the tech world. microsoft's bid on yahoo is a perfect illustration of why microsoft is doomed to failure. how many startups could they fund with $45 billion? 100? 200? 1000? why exactly do they want to be at the helm of a slowly dying web portal left over from the first dot com boom? i remember someone talking of microsoft and relating their situation…
First Yahoo messenger and MSN messenger joined networks. This was a reasona next step. yahoo is not completely worthless. In many parts of the world Yahoo dominates the IM market and in email Yahoo and Microsoft have a much bigger market share worldwide. yahoo also owns sites like Flickr and Delicious, both of which are better than their Google counterparts. yahoo also has deals to provide email for many ISPs in the…
shit! I am going to have to move a way from deli.cio.us, I already had lot of links!
Re: Microsoft bids $44.6 billion for Yahoo
#28Earlier quoted context omitted.
it's rare to see such simple, fundamental and spot on analysis in the tech world. microsoft's bid on yahoo is a perfect illustration of why microsoft is doomed to failure. how many startups could they fund with $45 billion? 100? 200? 1000? why exactly do they want to be at the helm of a slowly dying web portal left over from the first dot com boom? i remember someone talking of microsoft and relating their situation…
>> how many startups could they fund with $45 billion? 100? 200? 1000? why exactly do they want to be at the helm of a slowly dying web portal left over from the first dot com boom? I understand the "startups are king" mentality around here, but come on . Regardless of their quarterly performance, Yahoo! is one of the biggest brand names on the web. Microsoft won't establish a bigger web presence by "funding startups…
my point is that they could get a lot more bang for their buck elsewhere. yahoo is a dying brand.
if they invested that $45 billion in 45 one billion dollar projects, if at least one of them had an annual net of more than $700 million/year, they are doing better than buying Yahoo.
Re: Microsoft bids $44.6 billion for Yahoo
#29crap... given MS's history with standards, I should switch from yui's css framework to another one if the bid goes through
Re: Microsoft bids $44.6 billion for Yahoo
#30its a good deal for stockholders I think. If you read the hype Yahoo is not doing to great(which I find hard to believe as they make a load of cash). I think the combined search powers could be really good.
http://finance.google.com/finance?fstype=ii&q=NASDAQ:YHO... take a look at the annual data. they may be profitable, but a 62% fall in net income over 3 years, that's pretty bad.
yeah good point but they are not losing money and I think you will see google do the same thing in a few years once they hit the peak for their products.
Yahoo's problem seems to be the management and the fact they are still playing catch up with adsense.