Friday, February 01, 2008

Yahoo! - It's all Good!

Some credible sources were telling me after the gap down (some even before it) before Bernanke's panicked .75 basis points cut that the low had been put in on the stock indices for the quarter.

While I didn't "believe it", I was quick to lighten up on my shorts on the gap down and my short positions now are a way to cover my longs in case the SHTF. (These technicians think that we are in for a "paws" that refreshes on the bear market....then later in the year, another leg down.)

Anyhow, after seeing google disapoint I was starting to think that we could catch another wave down....then this:

MSFT agrees to buy Yahoo at a ****61% premium**** over their trading price.

Who in the H.E double toothpicks pays a 61% premium for a declining asset.

Finally, somebody overpays, stupidly, for an asset and i'm not an owner of the acquirer. Bout time I missed a bullet.

I'm quickly left to wonder what this means for the rapidly shrinking business of delivering search results.

Currently the three players are Google, Yahoo, and MSN. If #2,3 merge, then it's really a two horse race and a bunch of also rans. I'm curious whether the algoritms will merge...whether there will be a difference in the two sites' search results as their is now.

Time will tell....It'll be interesting to see what this does to the indices today given what a big weighting msft has.

ciao,
fB

2 comments:

rabble said...

I have to say the MSFT offer made me happy, my stock in YHOO shot up %48 in a single day. I sold. Everybody else i know at yahoo did the same. The very day i started getting offers from everybody, startups to google. I'm not jumping ship until i finish the site i've been working on building for them.

fuBarrio said...

rabble, congrats. from 'roadkill to riches' in a single day! :)

the commentary from yang about yahoo "exploring options" is laughable.

prince charming comes to sweep cinderella off her feet, but she demures and says she'd like to explore options first.

yeah, right! :)

fuBarrio