Yahoo Stock Bolstered By Microsoft CEO's Comments - InformationWeek
IoT
IoT
Mobile // Mobile Applications
News
10/16/2008
03:45 PM
Connect Directly
Google+
LinkedIn
Twitter
RSS
E-Mail
50%
50%
RELATED EVENTS
Ransomware: Latest Developments & How to Defend Against Them
Nov 01, 2017
Ransomware is one of the fastest growing types of malware, and new breeds that escalate quickly ar ...Read More>>

Yahoo Stock Bolstered By Microsoft CEO's Comments

Microsoft disavows interest in its previous financial offers but comments about "continuing opportunities" by Steve Ballmer suggest otherwise.

Looks like Microsoft may not be totally finished with its dealings with Yahoo.

Yahoo's stock had surged 12% by 3:00 p.m. EST on Thursday, a rise that Bloomberg News attributes to comments by Microsoft CEO Steve Ballmer expressing interest in a Yahoo acquisition.

According to Bloomberg News, Ballmer, at a Gartner conference in Orlando, Fla., said there may be "continuing opportunities" for a search partnership with Yahoo, even as he noted there are no discussions between the two companies at the moment.

In an effort to clarify Ballmer's remarks, Microsoft issued a statement on Thursday to further distance the possibility of a deal. "Our position hasn’t changed," the company said. "Microsoft has no interest in acquiring Yahoo; there are no discussions between the companies."

Yahoo's stock on Wednesday dropped below $12 per share, far below the $33 offer Microsoft couldn't get Yahoo to accept earlier this year.

In an article on Silicon Valley Insider on Wednesday, financial analyst Henry Blodget called this a ridiculous valuation given Yahoo's real worth.

"Yahoo has a global audience of 500 million people," Blodget said. "It is trading at well below replacement value (spend $15 billion, and you could not build a new Yahoo today--not one with this global reach and brand). Wringing compelling upside out of the stock at $12 is not rocket science. At this price, it's not even basic arithmetic."

While the financial world waits to see how the Microsoft-Yahoo soap opera will end, it's also waiting to see whether Yahoo will be allowed to go ahead with its advertising partnership with Google. Google and Yahoo have reportedly been talking with the U.S. Department of Justice in an effort to prevent an antitrust lawsuit.

The Google-Yahoo ad deal, which will allow Google to serve ads on Yahoo search results pages, was originally supposed to begin this month, but it has been temporarily postponed to allow more time to discuss the arrangement with the Justice Department.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll