Finally some sanity about business buyouts. And in a most unusual place--the dot.com world. This column from PC World (link from Tom McMahon) advises Microsoft:
Software is not a dead end! So why would Microsoft want to get into the
crazy businesses that Yahoo! plays in—social networks, advertising
sales, photo-sharing sites, search directories, personal ads, phone-sex
come-ons, news summaries, stock charting, scrapbooking, dogs and cats,
MySpace wannabees, and so on. Are you folks at Microsoft clinically
insane? Have you not learned your lesson from MSN—the wannabee AOL
killer? Cripes, get a grip.
This is all because the new kid, Google, which has nothing to do with
you in reality, came along and is making money with a search engine. Oh
no, hit the panic button! Let's spend all our money in an effort to,
uh, compete with Google.
And what is it with all the geniuses who think this was a good plan? Do
the math. Forty four billion and you were considering spending more!?
For what? Earth to Microsoft: Yahoo! is not worth $44 billion. You
could buy General Motors lock, stock, and barrel for $14 billion, name
all the cars "Google Sucks," and get more bang for the buck. Heck,
you'd have enough left over to buy Ford for around $16 billion, and you
could name all those cars "Google Sucks More" and still have $14
billion left over for a big party.
Does anyone ever look at the market cap of these multinational firms
for a reality check?
Microsoft wanted to oust the Yahoo! board of directors. It should oust
its own. Geez.
No wonder Linux is gaining ground on you guys.
I couldn't agree more. How could Yahoo be worth what GM and Ford is? They don't have any tangible assets even close to GM and Ford's numbers. The entire scenario of Microsoft buying Yahoo for the obscene amount of money they offered is just ridiculous.
If I were a Microsoft stockholder I'd be selling my stock right now. Clearly their management has nothing else to do other than squander billions of Microsoft cash. On the other hand if I were a stockholder of Yahoo I'd be raising hell with their management for not selling . Sometimes the leaders of companies, even very successful ones, have entirely too much time and money on their hands.
Of course Microsoft finally came to their senses and backed down. I have no doubt they'll try another buyout though. I give their management the stupid business trick of the year award for their effort. Of course they have to share it with Yahoo because they're equally stupid for not selling at that price.
May 8, 2008 in
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