The Underscore Archives

On 12/02/2008, Andy Davies <dajdavies at gmail.com> wrote:
> > Yahoo directorship successfully repels boarders (at least for the time being):
> >
> > http://rurl.org/hya
> >
>
> Yeh but ultimately Yahoo's statement is bollocks!
>
> The board decides that the "substantially undervalues" Yahoo! If Yahoo
> is worth more then why isn't the share price higher?

You have to bear in mind that Microsoft has so far failed to make any
of it's online media  very successful - they've all been trounced by
competitors and haemoraged money (in fact pretty much all MS ventures
except office and windows make huge losses) - if you had shares in
Yahoo, would you want MS to come in and totally kill the value of the
assetts (especially goodwill, which is the biggest asset of online
media like Flickr, etc)

> >From a financial perspective, MS is offering more than the general
> populace think Yahoo!'s worth, from a personal perspective the things
> that are valuable aren't branded Yahoo (flickr and delicious) and I
> hope MS never get their grubby paws on them...

Share prices aren't dictated by the general populace - they're pretty
much determined by a relatively small number of brokers and analysts,
they aren't in any way rational or clever - the invisible hand of the
market is more like a magic 8 ball in a posh suit ;)

A. (who might be bitter that the muppets in the stock market turned
his thousands of pounds of pension contributions over the last
finanicial year into a 260 quid loss)



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