So Yahoo says that Microsoft should buy it? Why? They were too good for the original 33/share price. Then they would do anything to avoid being bought over by the “bad” Microsoft and went begging to Google. Google also tried to unnecessarily “save” Yahoo from Microsoft. For what perverse purpose? What is the big problem? Yahoo acquires news technologies and their userbase for the purpose of making money. Google acquires new technologies (some really just a teen social phenomenon) and their userbase for the purpose of making money. So what is so bad here about Microsoft buying Yahoo and it’s userbase for the purpose of making money?
The article that reports the new “request for offer” is at: http://www.bizjournals.com/sanjose/stories/2008/11/03/daily57.html
This might be reflecting the new Microsoft price of 21.69 currently. Which is really bad for the calls I’m holding.
Yesterday MSFT fell below MA 20 and gapped down today. Also continues to go down today. This may be a simple following the market thing or another expectation from shareholders of MSFT that they’ll do something crazy like buy Yahoo.
Personally, I think that MSFT will benefit from the added userbase of Yahoo and if MSFT revamps the really big and overly flash based ads on Yahoo that take 50% of the screen, then it will be a good money maker for MSFT. Even as is, it might be a good money maker. But it has a slightly cheesy look. But on the other hand, if paying a premium and having the share price nosedive is gonna be a longer term thing, then I don’t want MSFT to buy and get involved in rebuilding a search engine company that long since stopped being a search engine and has become more of a web portal. Not insulting Yahoo search capabilities, but just saying that even people who use Yahoo as their main search engine, use the word “google” to mean search. When they search on Yahoo, they say they just “googled” it!