I have owned Yahoo for clients for a long time. I scaled out of the position this morning (guessing my average price is close to $33, but don't know yet).
I take the market's reaction to mean that a combo is very likely (I don't know, just my read on the reaction). A couple of comparisons have been made here to TWX and AOL and that makes sense to me.
Although I can't document it in writing I owned AOL when the TWX news hit and I sold right away. If Yahoo gets absorbed by MSFT all that is good about Yahoo would be muted, IMO, which is why I have sold the stock and if the deal does not happen I think the stock would head lower.
Updated since that post my average price was $32.96.
4 comments:
I was part of a company acquired into the MSN division. I worked in MSN for about 8 years.
I watched Microsoft sink billions into MSN, most recently in Search and a home grown ad platform and still remain a perennially distant third. The culture clash between Redmond and Sunnyvale will mire any potential merged company.
I'd not only sell YHOO, I'd double down on GOOG.
"In 20 of the last 23 days, the DJIA has closed higher (which has never occurred in the history of the DJIA)." May 2 Paul J. Lamont
If one were to hoist a bowling ball into the air directly over one's head, would you place your bet on how many feet the peak height was or on whether the scenario will end badly.
"My findings show that there is no statistical basis for the anxieties being voiced by some that a win streak as long as the Dow recent one is destined to end badly for the market." - Mark Hulbert Cuatro de Mayo
Whew! What a relief! I was getting worried. ;)
on the contrary, i'm still holding on to Yhoo and i still plan to.
See my portfolio:
http://www.stockalicious.com/stock_journal/280
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