Yahoo’s scary future
The company won’t just bleed red if its upcoming financial quarterly report fails to impress investors, it may turn from Yahoo Purple to Microsoft Blue and White in very short order.
Jerry Yang will need a set of Peril-Sensitive Sunglasses switched to deepest black if, sometime in April, Yahoo’s financials fall short of expectations.
BoomTown’s Kara Swisher cited inside gossip at Yahoo about the proposed acquisition by Microsoft: no deals of any kind, with Microsoft or anyone else, will happen before April 22, when Yahoo reports its first quarter numbers.
That could be astonishingly bad, as Silicon Alley Insider suggested this scenario:
Microsoft goes about its business until early April–nominating its slate of board members, preparing for a hostile shareholder meeting–and then, just after Yahoo reports a horrendous first quarter, pulls its offer for the company. Yahoo’s stock collapses, costing shareholders 40% overnight. Jerry & Co. are pummeled with shareholder complaints and lawsuits, and Yahoo’s employee and shareholder morale hit all-time low. Then, just when all hope seems lost, Microsoft comes charging back and saves the day with a $25 bid, and Yahoo owners flatten Jerry & Co. in a stampede to tender their shares.
Anyone who has followed Microsoft for any length of time likely thinks the company would be capable and willing to do this. Avoiding the problem will be simple; Yahoo just needs an outstanding first quarter to put off this possibility.
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