Yahoo at 22!
Now that Microsoft has withdrawn their offer to buy Yahoo, the stock will drop like a rock.
A few things are likely to happen…
- Shareholders who bought after the Microsoft announcement are likely to sue.
- Shareholders who owned before the Microsoft announcement and did not sell in anticipation of the deal are likely to sue.
- Yahoo’s market capitalization will drop back down to its intrinsic value.
Microsoft really needed Yahoo and even though the Yahoo CEO didn’t seem to understand it, Yahoo needed Microsoft.
Time to enter the short order.
[...] than a month ago, Microsoft said they were withdrawing from their bid to buy Yahoo. At that time, I made some predictions of the fallout. Then both Microsoft and Yahoo said they were still “talking” and Carl Ichan stepped in [...]