Well, I didn't write the article but I think "tarnished is a fair description of Yahoo's reputation, especially in the eyes of the market. In the past Yahoo used to be the street's golden boy, the dominant player on the net. Over the years they've completely ceded their lead to Google and continue to lose share to this day.
I for one am surprised at how far Yahoo is willing to go to avoid being acquired. Yang claims that Microsoft is undervaluing the company and that he is building Yahoo for the long term, but his actions don't seem to match his words.
Yahoo has recently started running Google ads on some of their searches. They are basically giving up on years of development and millions of dollars spent developing their own search monetization software in returns for a short term gains running Google ads. It seems like they're giving up on one of their core businesses and just handing it over to their main competitor on a silver platter in an attempt boost their numbers to jack up Microsoft's bid or avoid a takeover all together. They appear to be willing to cut off their nose to spite their face.
As for EA and T2, anything could happen. GTA IV has been released to critical acclaim and blockbuster initial sales and TTWO stock has hardly moved at all. This signals that the market continues to believe that EA will raise their bid slightly and that the success of GTA IV is already priced into the stock. Zelnick and company seem to be using the same playbook as Yahoo by playing hardball, but I think Take-Two managment is more greedy than they are irrational. If EA raises their bid I belive that Take-Two take it and accept their offer.
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Well, I didn't write the article but I think "tarnished is a fair description of Yahoo's reputation, especially in the eyes of the market. In the past Yahoo used to be the street's golden boy, the dominant player on the net. Over the years they've completely ceded their lead to Google and continue to lose share to this day.
I for one am surprised at how far Yahoo is willing to go to avoid being acquired. Yang claims that Microsoft is undervaluing the company and that he is building Yahoo for the long term, but his actions don't seem to match his words.
Yahoo has recently started running Google ads on some of their searches. They are basically giving up on years of development and millions of dollars spent developing their own search monetization software in returns for a short term gains running Google ads. It seems like they're giving up on one of their core businesses and just handing it over to their main competitor on a silver platter in an attempt boost their numbers to jack up Microsoft's bid or avoid a takeover all together. They appear to be willing to cut off their nose to spite their face.
As for EA and T2, anything could happen. GTA IV has been released to critical acclaim and blockbuster initial sales and TTWO stock has hardly moved at all. This signals that the market continues to believe that EA will raise their bid slightly and that the success of GTA IV is already priced into the stock. Zelnick and company seem to be using the same playbook as Yahoo by playing hardball, but I think Take-Two managment is more greedy than they are irrational. If EA raises their bid I belive that Take-Two take it and accept their offer.
Disclosure: Long MSFT