Friday, February 1, 2008

Do you Yahoo?

I had a feeling this was going to happen sooner or later. Microsoft is getting a bit desperate by trying to buy Yahoo!. The perfect time would be when earnings dissapoint and the stock hits a new low. I don't think this deal is going to go through. The justice department will not allow 2 big companies like those to reduce a limited segment like websearch is. I know there's a lot of search engines out there but who uses anything other than the popular ones. I don't think the Yahoo! founders will cave in either. There's too much at stake. Yahoo didn't report a loss recently. They did however report a slowdown in their earnings. That's not a reason to sell a company to your rivals. We know that Google wants to rule the world but there's nothing wrong with having competitors. Yahoo! will in the future increase earnings just like any big company does. Earnings deceleration is just part of any company's business cycle.

No comments: