Yahoo: Buy us please Microsoft

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Yahoo Co-founder and CEO Jerry Yang has suggested Microsoft buying Yahoo would be "the best thing".

At the Web 2.0 Summit in San Francisco, California, Yang said "To this day the best thing for Microsoft to do is buy Yahoo....I don't think that is a bad idea at all, at the right price whatever that price is. We're willing to sell the company."

Yahoo declined a bid from Microsoft for $33 (£21) a share from Microsoft back in May. Since then Yahoo shares have plummeted and Microsoft publicly stated it no longer had any interest in buying Yahoo.

Yang was questioned by one audience member regarding Yahoo's rejection of the Microsoft offer. "They walked away from a public offering and we were ready to negotiate. We wanted to negotiate a deal. We felt we weren't that far apart.

"At the end of the day, they withdrew and they have since been clear about not wanting to buy the company," explained Mr Yang.

Microsoft has not commented on Yangs latest revelations. If Microsoft were to buy Yahoo now they would get a good bargain compared to back in May. Since May the shares have dropped from $28.67 to $13.92 at the time of writing.

(1 reply) #1 Neobond on 06 Nov 2008 - 09:50

$13.92 lol I remember that Microsoft offered them $31 a share.

Sucks to be him!

#1.1 theyarecomingforyou on 06 Nov 2008 - 16:25

Yeah, it will likely go down in history as one of the most foolish business decisions of all time.

#2 Navan on 06 Nov 2008 - 09:51

Sad but the right move as well.

(4 replies) #3 superhuman on 06 Nov 2008 - 10:03

That is so shame for yahoo. Refuse the buy then beg for the buy. What's a stupid CEO!

#3.1 Majesticmerc on 06 Nov 2008 - 10:21

Yeah but he explained that he thought Microsoft would offer more, and wasn't expecting them to back out.

#3.2 Mav Phoenix on 06 Nov 2008 - 10:40

Majesticmerc said,

He should know this isn't like playing poker, or maybe it is.

#3.3 GP007 on 06 Nov 2008 - 13:41

Yahoo wasn't even worth the $30 back in May actually. The price was at $23-$24 then jumped to $28 after the news MS put in a bid etc. Seriously I wouldn't pay more than $20 this time around.

#3.4 ricknl on 06 Nov 2008 - 14:14

GP007 said,

Actually the stock price of Yahoo was around $19 before Microsoft's offer.

#4 Ledward on 06 Nov 2008 - 10:19

oh schnap!

#5 cork1958 on 06 Nov 2008 - 11:18

Greedy dillholes!

Hope they don't get squat if MS does now!!

(1 reply) #6 KavazovAngel on 06 Nov 2008 - 11:23

Now offer them 15$ per share. If they don't like that too, wait few months, maybe the price will fall to 5$ per share.

#6.1 Cpugeni Ω on 06 Nov 2008 - 12:10

KavazovAngel said,

Quite right!

#7 Faisal Islam on 06 Nov 2008 - 12:01

great job Yahoo! It's not a shame for u, ur decision is very good. btw i'm MS Fan boy

#8 Cpugeni Ω on 06 Nov 2008 - 12:09

Yahoo! must be really desperate now.... That'll teach em!

(1 reply) #9 AnthoWin on 06 Nov 2008 - 12:10

$5 per share? MS would probably pioneer cloud computing with their 'Azure' with absolutely no interest of yahoo by then.

#9.1 GP007 on 06 Nov 2008 - 13:43

If they do put a offer this time it'll just be for 2 or 3 parts of Yahoo, not the whole thing. First part being the Search unit, and then a few key sites that get alot of traffic. The rest can be sold off to someone else or just die.

#10 WooHoo!!! on 06 Nov 2008 - 12:21

Yahoo are better at the whole web portal thing compared to the mess MSN so that would be good. Then you have Flickr which I think MS would actually make better for free users. Stuff like that. I think MS will eventually buy them very cheap.

(1 reply) #11 Magallanes on 06 Nov 2008 - 13:06

Without considering any speculative variable: (for P/E the least is the best for investor and shareholder).
MSFT P/E (ttm): 11.67 (Microsoft) Or if you spend $100 in Microsoft, you will earn $8.56 dollars, it is not a gold mine but still fine.
AAPL P/E (ttm): 19.28 (Apple)
YHOO P/E (ttm): 20.87 (Yahoo)
So, the current price per each Yahoo's share is somethat fair, not so good but a bit near to Apple.

Google instead (suprise, surprise):
GOOG P/E (ttm): 21.3 (Google) Or if you spend $100 in Google, you will earn only $4.69 dollars.
In this case, Steve Ballmer is so damn right.

#11.1 saccrant on 06 Nov 2008 - 17:03

Erm P/E ratio does not mean that.
P/E ratio of 20 means that the price of the stock is 20 times the earnings/stock of the company. It doesn't mean how much you will earn. P/E is used to see if a company is overvalued or under valued. Not how much you are getting.

Dividend payout ratio is how much an invester will earn by holding shares.

#12 rev23dev on 06 Nov 2008 - 14:36

hope this doesn't happen. let capitalism do what it does best and kill this company off.

#13 lylesback2 on 06 Nov 2008 - 15:11

I knew it! Microsoft just had to wait out Yahoo a little bit more, and could potentially pick up Yahoo for a lot less then $31 / share.

#14 thealexweb on 06 Nov 2008 - 16:43

I think Microsoft should just say to them you've missed the boat, and go after AOL and Face Book for a bit then come back when Yahoo are in real trouble. Offer 20 billion tops Microsoft.

#15 Soldiers33 on 06 Nov 2008 - 16:46

yahoo desrve wot they get.

#16 Gabureiru on 06 Nov 2008 - 17:28

I'm glad this happened to Yahoo, most comments on the MS takeover were negative, now see them suffer the consequences =-D

#17 C_Guy on 06 Nov 2008 - 18:00

"To this day the best thing for Microsoft to do is buy Yahoo..."

OOPS! You mean the best thing for YAHOO is to be bought by Microsoft. Sorry, you had your chance and now you have to face the consequences. Don't blame Microsoft - they offered, you declined. Begging will only lower your stock price further.

#18 +tunafish on 06 Nov 2008 - 18:10

i cant stop laughing

#19 +Xerxes on 06 Nov 2008 - 22:36

I think MS were pretty serious when they said they are no longer interested in Yahoo! I don't think they will buy them. Considering Yahoo! spat in their faces even after the generous offer MS made, MS should return the favor

All that said Yahoo! won't go under, probably when they hit [very] rock bottom, some upstart company will buy them probably.

#20 realmccoy on 06 Nov 2008 - 23:50

M$ should buy them

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