Steve Ballmer TKOs Jerry Yang
Posted on May 4, 2008 by
Paul WhiteTomorrow is Monday, and I am sure everyone with Yahoo's stock is going to be having a very bad day. I will actually get up early just to watch the Pre market trading. I had a feeling this was coming. Something about all the hype didn't feel right. That and Steve Ballmer is not someone you want to mess with. Unlike Bill Gates who is known to be a calm and logical man. Steve Ballmer at times looks like someone that would hang with KISS. He is a very emotional person that can get people fired up. He certainly got investors fired up. Investors were buying up Yahoo's stock like crazy. With the way Ballmer was talking it was almost certain that the deal was going to happen. However Steve stayed true to one thing. He said , I know what Yahoo is worth and I will not pay a dime more. Steve decided it was not worth it. Not just that by he is not going to even take the offer to Yahoo's investors.
Here are a list of possible things that could happend Monday.
1. Yahoo drops 25%-30%
2. Microsoft climbs 10%-15%
3. Jerry Yang is served divorce papers from his wife
4. Yahoo investors Sue the Yahoo board for not taking the offer.
5. SIRI climbs 8% due to the flood of (sheep) investors moving their money out of yahoo and into another quick money stock that is doomed to fail.
Just think if Steve never made his offer in the first place nothing would happen. But since he did, it caused a flood of speculation, and a surge in market capital of Yahoo. Unfortunatley Microsoft was the only company that would make an offer to Yahoo. It takes more than one person to make you an offer for the value to be real. Yahoo now gets to enjoy a flood of lawsuits from its investors. This will consume much of Yahoo's resources, taking away from growing the company. So even though Microsoft didn't get Yahoo. It did leave it weaker than it found it, and this will help Microsoft's position in the industry.
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