How to Increase the Value of Yahoo! (YHOO), Revisited

by Mr Juggles

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:

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.


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  1. July 2nd, 2008 | 12:01 pm

    Yahoo could write the definitive ‘how to be number 1 company in your niche and throw it all away..’