Jerry Yang reached out to Microsoft and was met with partial rejection. Yahoo had increased around 7% this week on rumors of a Microsoft buyout. Today, Steve Ballmer shut down any hope of a buyout, causing Yahoo shares to decline by around 14%.Continuing the romantic analogy I've used to describe this situation (Yahoo Shareholder Meeting (2008)), Ballmer basically said he is willing to sleep with Yahoo but not marry it--in other words, he will partner with Yahoo but not buy it. Yahoo must feel terrible knowing that Wall Street values its stock more by Microsoft's intent than on its individual growth prospects. Can't a woman just be independent and attractive? The market is treating Yahoo like an old woman with no other prospects, no job, and no education, who needs to find a man quick or be cast into a dungeon. It would be funny if it wasn't so wrong.
Yahoo can do fine on its own. Its home page continues to rank in the top two for visitors. It is doing very well in Japan. Also, the recession will help Yahoo keep more of its American talent. Yahoo's salesforce might be its biggest problem--it needs to focus on getting major ad accounts to boost its revenue, and it has lost some key sales personnel. At least now, Jerry Yang can't be completely blamed for Yahoo's stock price--he reached out to Microsoft and was rejected. It's time for Susan Decker to talk to Time Warner and buy its AOL property. After all, the best revenge in romance is finding another desirable partner.
2 comments:
I'm offended by your comparison of Yahoo to an old woman. I don't understand what you're trying to say.
I'm happily single and retired. And I've never been married, because I chose not to get married. I never bought into the whole fable of the happily married crap.
I enjoy being with someone because I want to be with him not because there's a promise of marriage.
Happily Retired, you seem to lack a healthy sense of context. I was clearly advocating that Yahoo should stay single and independent and disavow a marriage to Microsoft. As for being old, I was referring to the market's perception of Yahoo as an old, decrepit woman. My perception is different--I see Yahoo as one of the top two Internet bachelorettes in the entire world.
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