Long or Short Capital

Dear Yahoo!,

About a month and a half ago, we provided you with a free report on how to increase your value. Since then, you have not followed any of our suggestions. In particular, our suggestion #8 — “Let the company be bought by Microsoft (NASDAQ: MSFT) at a 50% premium to YHOO’s closing price before MSFT’s February bid” — went unheeded.

Since then, you have chosen to take a few other actions including:

• Rebuffed Microsoft.
• Completed another reorganization (3 in 6 months?) to consolidate power fully and finally under Sue Decker. Sue Decker’s previous experience includes running the finances of Yahoo at a time when most people now agree it massively under-invested AND flubbed chances to acquire numerous of the current, leading internet companies. Prior to that, she analyzed newspapers, which are now effectively dead.
• Said re-org also consolidated power underneath Decker’s #2, Hilary Schneider, who also has a lot of experience in the dying newspaper industry. For reference, here is the stock price of McClatchy, the company which purchased Hilary’s alma mater, Knight Ridder. Her experience with a static, dying medium will surely have prepared her for the dynamic environment that is online advertising.

• Bored investors with your inane ramblings from the Chairman to the point where no one actually cares what you say. In fact, it’s likely that no $30bn company has ever succeeded in having investors treat its Chairman’s letters like viagra spam before. No I don’t want More Yang, [Mark as Spam].

However, I must give credit where credit is due. Congratulations on:

• Creating one of the fastest growing groups on Facebook: Yahoo Alumni.
• Finally getting the attention of internet community centers like Techcrunch, where they have set up special pages to track the departures of your executives.

Had we known here at LoS that this type of success was possible, we would never have issued our initial recommendations. Our apologies for failing to see the bigger picture.

Sincerely,
LoS

• How to Increase the Value of Yahoo! (YHOO)
• The Nerd Taint Is Even Stronger Than Imagined
• Translating Corporate Speak: Yahoo
• The Remunerative Powers of OO
• In-Kind Price Targets
• Yahoo's CEO is Addicted to Gambling, Stock Down
• The Carly Catapult
• I'm Calling the Top, today. My ten signs:
• How to Improve the Value of AT&T (T)
• The OJ Simpson Corollary
• 2x2 Matrix: Less & More
• How to Increase the Value of Microsoft (MSFT)