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Yahoo Shares Top $31, The Price Microsoft Offered In 2008

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Re: Yahoo Shares Top $31, The Price Microsoft Offered In 2008

#31
One interesting bit of Yahoo news. Yahoo in Australia is partnering with Adwords rather than Bing Ads. Wouldn't surprise me if all of Yahoo went that way once their contract with Microsoft is up.

Despite all the effort it doesn't really feel like Bing Ads is on the map compared to Adwords.

Re: Yahoo Shares Top $31, The Price Microsoft Offered In 2008

#32
post #20
post #2

With inflation that number is around $33 bucks. But jeez what a silly metric, who's happier that deal didn't happen - Yahoo or Microsoft?

Yahoo -- I think they were concerned about getting infected by M$'s culture.

At least they'd have a culture then.

Re: Yahoo Shares Top $31, The Price Microsoft Offered In 2008

#33
post #2

With inflation that number is around $33 bucks. But jeez what a silly metric, who's happier that deal didn't happen - Yahoo or Microsoft?

I think it's not very relevant to adjust the price for inflation. You should adjust for opportunity cost instead, like the rate of T-bills.

Re: Yahoo Shares Top $31, The Price Microsoft Offered In 2008

#34
post #26

It should be noted that Yahoo owns 20% of Alibaba. With Alibaba announcing its IPO plans earlier this year, yahoo's stake is worth between $13B to $18B. Most of the share price increase is because of this. Not because Yahoo's core business has gotten better. Yahoo is worth $31B today. So almost 1/3 to 1/2 of Yahoo's valuation is its stake in Alibaba. In 2008, nobody knew how big Alibaba would get.

Yahoo recently sold most of their stake in Alibaba so Marisa could go on a shopping spree.

Back in 2008, Alibaba was already a big thing and probably had to do with Microsoft wanting it.

Re: Yahoo Shares Top $31, The Price Microsoft Offered In 2008

#35
post #25
post #13

The S&P 500 index was at around 1,300 at the beginning of 2008. It's at around 1,700 today -- actually, a record high. Of course, it reached as low as 700 to 800 in March 2009.

Quantitative easing is great... Mugabenomics forever! "Priceline.com became the first company listed in the S&P 500 to trade at $1,000 in the index’s 56-year history." http://blogs.wsj.com/moneybeat/2013/09/18/on-a-day-of-record...

Inflation has more to do than with overt quantitative easing. Also, share price has no direct correlation to overall valuation; you have to throw in the number of shares and multiply.

Re: Yahoo Shares Top $31, The Price Microsoft Offered In 2008

#36
There is no legitimate business-based excuse for Yahoo! to have turned down Microsoft's offer. Yang et al had to fight tooth and nail to keep it from being executed, and that opposition was obviously based purely on ideology: not wanting to become part of the MS behemoth. I don't believe any informed person seriously thought that Yahoo!'s choice to not only forgo but actively prevent Microsoft's buyout had anything to do with anything else.

Re: Yahoo Shares Top $31, The Price Microsoft Offered In 2008

#37
post #26

It should be noted that Yahoo owns 20% of Alibaba. With Alibaba announcing its IPO plans earlier this year, yahoo's stake is worth between $13B to $18B. Most of the share price increase is because of this. Not because Yahoo's core business has gotten better. Yahoo is worth $31B today. So almost 1/3 to 1/2 of Yahoo's valuation is its stake in Alibaba. In 2008, nobody knew how big Alibaba would get.

This is what should scare investors, look at the link below and you realize that Yahoo is a leader in none of their business. Google leads search, Facebook leads social, Twitter realtime news & events etc. http://everything.yahoo.com/

They have a big bowl of goo right now. I was impressed with Marissa's stats during her Disrupt interview but a few days ago, i took a look at their business and they just have a bunch of mediocre properties with lots of link bait. This is how they getting so many views, a lot of gossip, lifestyle, tv clips. Even in the gossip side, tmz & others beat them there. Dan Loeb is a smart guy, he jumped out at the right time. I like Yahoo and hope they come up with something that they dominate. They destroyed their research departments, which were one of the best in the world and now when the market moves towards more intelligent backends as devices get smaller, they are stuck fighting for weather and gossip market space.

Re: Yahoo Shares Top $31, The Price Microsoft Offered In 2008

#38
post #20

Earlier quoted context omitted.

Yahoo -- I think they were concerned about getting infected by M$'s culture.

At least they'd have a culture then.

At the time they felt very strongly about it. The employees were adamant about the fact that they had a certain way of doing things and they were concerned that Microsoft would disrupt whatever it was they had.

I don't know if it was the right thing for either party, but that's what happened.

Re: Yahoo Shares Top $31, The Price Microsoft Offered In 2008

#39
post #26

It should be noted that Yahoo owns 20% of Alibaba. With Alibaba announcing its IPO plans earlier this year, yahoo's stake is worth between $13B to $18B. Most of the share price increase is because of this. Not because Yahoo's core business has gotten better. Yahoo is worth $31B today. So almost 1/3 to 1/2 of Yahoo's valuation is its stake in Alibaba. In 2008, nobody knew how big Alibaba would get.

This is what should scare investors, look at the link below and you realize that Yahoo is a leader in none of their business. Google leads search, Facebook leads social, Twitter realtime news & events etc. http://everything.yahoo.com/ They have a big bowl of goo right now. I was impressed with Marissa's stats during her Disrupt interview but a few days ago, i took a look at their business and they just have a bunch o…

They might be the leader in fantasy sports. Obviously a small portion of overall eyeballs but eyeballs that refresh the site many times a day.

Re: Yahoo Shares Top $31, The Price Microsoft Offered In 2008

#40
post #25

Earlier quoted context omitted.

Quantitative easing is great... Mugabenomics forever! "Priceline.com became the first company listed in the S&P 500 to trade at $1,000 in the index’s 56-year history." http://blogs.wsj.com/moneybeat/2013/09/18/on-a-day-of-record...

Inflation has more to do than with overt quantitative easing. Also, share price has no direct correlation to overall valuation; you have to throw in the number of shares and multiply.

Quantitative easing = inflation.
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