Yahoo dipped again today (as did the market in general), down nearly 9% to $10.34. That means they’ve officially destroyed $31 billion in shareholder value since turning down Microsoft’s acquisition offer earlier this year. We now remember the good ‘ol days back in June when the stock price was in the twenties.
If you go by Facebook’s official valuation of $15 billion, it’s now worth more than Yahoo’s $14.33 billion.
Analysts are saying they have to ditch search, and fast, because the costs of competing with Google mean they are letting their display ad business languish. They barely have enough resources to fight one advertising war, let alone two.
The Google deal is dead, despite the fact that Yahoo spent $577,000 last quarter to lobby the government to allow it.
As I’ve said before, we can all be confident that the Yahoo stock price won’t drop much more, because it can’t go below zero.
Yahoo needs to outsource their search to Microsoft to even have a chance of staying relevant. But before that, Yang needs to step down. There’s no face-saving move left for him. New leadership is needed before there’s nothing left to lead.
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I have more faith. It’s just an undervalued company.
Yahoo made a horrible mistake not selling to MS.
And we’ll christen you “Master of the Obvious.”
Dude….totally agree with you.
I think world is forgetting that almost every internet user on this planet has an account with Yahoo! Well…..atleast an email account. Please dont forget the fact that Yahoo is on of the top pioneers of the web…pay respect for it…
As for Yang…He is totally a true technologist. Ask his to write an OS…probably he will in a few days…but Management….dude… he has to go back to MBA (not PhD)…to understand how the word “business” is actually spelled. I totally agree….He has to step down…
http://www.livbit.com
Where do you get the idea that Jerry is a good technologist?
Are you thinking of David Filo, the other founder? Yes, jerry was a PhD
candidate in engineering. Is that where you get the impresssion, or do
you have any other evidence of it? Just asking. He hasn’t been technical since the first engineer (Don Lobo) was hired at yahoo.
With Yang in control I think it’s just about the right value at $5. Without Yang I think they could easily be a $20-$25/share company. They still have great properties and lots of users through their email that aren’t going anywhere.
everynone has properties these days without ads. it’s called utility computing without ads changed on montly fee with real service levels. Yahoo is in ’90s mode.
if yang retired does’nt mean the situation would change.
this is not a meltdown…..this is a milkdown. follow the money. somebodies winning here.
its gonna take a game changer merger or acquisition to save yaahoo.
ChangeLocator- where being different is easy.
Are you lost??? This is a love Apple, hate yahoo, and worship Google and Gates site. Even though the stock market is speculator driven and the entire market is in the crapper, it must mean that the company is near collapse. Please realize that the monopolization of the search industry is good and competition is bad. The last thing we need here is an independent site… especially one that make a profit.
one thing you forgot to mentioned which result to bias opinion. Not only Yahoo stock down but also Google and all others.
Shouldn’t facebook’s value have dipped accordingly? I think even stating that 15billion figure is crazy.
How much did MS shareholders lose since MS made the acquisition offer? Just curious.
MSFT shares have dropped 30-40% since late Jan / early Feb. Good call.
Gio, you should be a tech crunch writter your articles might cover all grounds not just one side…. Mike take note, all the big internet stocks have fallen, the whole damn world market has fallen….
I’ll consider it. : )
There….now we have some base level to compare Yahoo with. MSFT down 35%, YHOO down 60%.
I guess every company has its ups and downs…
Actually since Feb 1 (day MSFT made to offer), YHOO is down 8% and MSFT is down 4% (at least according to GOOG). Interesting enough, until Nov 7, when GOOG backed out of the deal with YHOO, YHOO price was actually up.
Over the same period GOOG has lost about 15%.
Yahoo! deserves better than this.
agree, quick death not long and painful
I suppose no other company dropped value last few months Have you noticed what bank stocks are trading at. No other CEO could have prevented last few months fall. Obviously this slimy reporting is to just get more clicks.
Surely there is some CEO in the world that could have swallowed his/her pride enough to take $44 Billion for the company instead of letting it sink to $14.
The market as a whole has lost…let’s call it 40%. That’s nowhere near the 70% that Y! has left on the table.
Many people thought Y! was being foolish for walking away at the time. They just so happen to be proved right in spades. It’s a gamble.
unfortunately Yahoo is near end. from here on out its just a painful death.
Cutting and pasting year-old TechCrunch story titles is no way to participate in Web 2.0. At least juice it up by putting your “executiveinsightsblog.com” URL in the little website field there (don’t forget to paste it in your comment, too).
the author is correct, i believe we all like yahoo but its time to say good bye and clean house while when in the down turn. no more push talk, just value please.
Was the author right when he wrote that TechCrunch has not once been right about Yahoo this year?
forget msoft….
how much has goog lost!!!!
and this is the point that mike knows, but chooses to ignore, so he can bash yahoo/yang.
the economic conditions are crushing everyone!!
but again, i ask mike… ummm just how many $100 million companies have you run/been a part of??!!!
easy to shout from the sidelines!
peace..
Thank you!
Google has lost ~$126 billion in market cap/shareholder value year-to-date.
Wish I bought apple at this price, dummy.
Apple was $30 in 1982. What price are you thinking of?
Apple was at 11 bucks the beginning of 04.
AAPL is much much less dilute than YHOO.
I bought apples for less than a dollar
… but that was from the supermarket.
Mike, You know nothing about the markets. Look at the 800 lb guerilla… google.. now a mere weakling… just hit a 52 week low. take a look at your 401k.. it’s in the tank. this has more to do with the market and little to do with yahoo.
look at all the market leaders, rimm, aapl, goog, they are all in the tank! cash is king my friend and you are witnessing the biggest bear market in your lifetime.
Fire Yang now. right on the money.
I don’t think its fair to put all the blame on Yang. Every stock is heading to the crapper, even Google. No one predicted a epic financial crisis that would wipe out every major investment bank. Yahoo has been doing encouraging things with BOSS and its new API’s. I personally believe yahoo should keep its search/crawler and continue to open source it further. This can lead to others innovating on top of it. Thats the only way to take on Google. The wall street guys have no patience for this open source talk though.
Time to buy! Even with today’s economic situation, at this price it will be a good decision to spare some money and buy the stock.
agree Yahoo should spend in investments of real market disruptive technology. i.e. Enterprise Cloud Computing with a value proposition not widgets. Yang is a cool 90’s guys not 2009
I smell layoffs…anyone else?
Yahoo’s board, the people who trusted Yang, should go to prison. You can say whatever you want about how Microsoft would have totally ruined Yahoo, but you can’t deny the fact that Yahoo is now sinking ship. Microsoft offered Yahoo a life-preserver a year ago, offering far more than Yahoo was worse. When they turned Microsoft down, they cost their shareholders more than $20 billion dollars.
Now, if Microsoft still wants Yahoo, they can get it for $11/share instead of the $31 they offered a year ago. That’s IF they still want Yahoo. If Microsoft doesn’t want Yahoo, Yahoo’s toast.
Does the same go for Google’s board, or is this a double-standard?
google is untouchable, not. internet advertising platform is sooooo 1990
Here is the chart that shows the relative declines in MSFT, YHOO, GOOG, and NASDAQ. Looks like GOOG and YHOO took the biggest hit while MSFT is about even with NASDAQ.
http://tinyurl.com/69gjna
yahoo has been toast. msft was only going for next level of their internet platform. the partnership proved msft has the stuff for next gen internet platform. msft doesnt need to buy yahoo. they have proving they can be an internet platform and need scalability and are parntering with goog now. sadly said, yahoo is dead.
I love Yahoo, they’re not just a search engine, they’re a serious content provider. If only they could monetize that content a little better, then they’d be all set.
Loving the new Yahoo Deals BTW. http://deals.yahoo.com/
If you go by facebook’s $15 million valuation.
You mean the one from months and months ago? The one that they got from Microsoft and couldn’t get again in a subsequent round?
That’s a ridiculous comparison, by any measure.
anyone with any yahoo stock at this point is an idiot only thing left is for jp morgan to buy them out cheap.
agree, yahoo is clearly a was of time. lets get back to business and clear out all old silicon valley skeletons floating around including web2.0. cloud computing is waiting.
So if Ebay, Yahoo, Amazon are all 15-17BB, this makes Facebook worth 1BB. Now way they are worth 4-15BB
Google’s highest stock price YTD was $685.33 / share.
Last trade for Google was $291.00 / share today.
Do the math.
When you put things into perspective it really can change how you think about a specific situation.
It only matters when Yahoo’s stock drops 60%, everybody else is just riding out the storm. See? No perspective necessary!
Michael, could you elaborate on why Yahoo! should outsource search to Microsoft? While I realize that Yahoo’s search business is losing money, I don’t understand the rationale behind wanting to consider outsourcing Yahoo’s most recognizable product to what I consider to be an inferior search engine.
The price of MSFT hasn’t hardly moved in almost 10 years. Yahoo is his white knight that will (hopefully!) change this.
whiteknight your kidding right? what investments have they made and jobs created in silicon valley?
Ha ha, no. It’s just a pump and dump.
All companies are the same, Goog down from 650’s to 290’s. That $100 billion market cap equivalent to 6 Yahoo’s.
Stop talking the same thing again and again we all know the stock price
Arrington continues to make a fool out of himself by pounding this horse.
If the deal had gone through with MS, he wouldn’t be carping today if the sum of their mark cap losses were larger in a combined entity. He wants to prove he has foresight about this industry, when he’s never really demonstrated any, except for the foresight to set up a blog to talk about it.
@Jake Walker, @Your Daddy well said.
Huh, Michael Arrington doesn’t like what Yahoo is doing. Who knew?
Too bad Barack’s busy at the moment. He’d make a better Yahoo! CEO than Jerry, from the sound of things.
Facebook Now Worth About $4 Billion, Revenue Light
http://www.alleyinsider.com/20.....4-billion-
dude stop with this trash - google has lost more than 100 Billion $ in the last year…and you keep trashing yahoo. please leave yang alone and let yahoo be yahoo. it’s THE internet pioneer…and be sure…they’ll come back.
It’s unbelievable that there are still fools out here trying to defend yang and give props to yahoo.
it would be easier for everybody if yahoo where to close shop. this is causing to much news for a 90’s. It’s like those folks who belive that Elivis still lives
Save Yahoo get Jerry Yang a VC role
I know it seems like many things are losing value right now, but actually its the dollar gaining in value. This deflation is just as much a problem as inflation before. The Fed needs to stabilize the dollar and end the deflation by issuing more dollars.
So, GOOG is not dropping, gas is not dropping, YHOO is not dropping. Its the dollar thats making it appear that way. And until the Fed maintains the dollar at a specific value of some commodity (gold for example), no one will know where the bottom will be.
http://blog.reinventdemocracy......ation.html
every retirement joe has there money on hand. not the best way to take the other half of there 201k
Is there a nobel price for economics? brown should get it.
great idea Al. take our homes, jobs and now our money way to go buddy
Facebook buys PR on TechCrunch for 2009-2010 => $5 MM total payout.
If I had $15 Billion to spare, I’d buy Yahoo and take it private.
Then all that would matter is innovation and revenue minus expenses. Not the ridiculous speculative stock market where the abstract paper value of a company matters more than its assets and fundamentals.
Mmm, yes. You may have a bright future ahead of you if you follow the example of Seymour Cray.
“If you go by Facebook’s official valuation of $15 billion, it’s now worth more than Yahoo’s $14.33 billion.”
Oh Michael, you are such a comedian. If we are to *actually* believe that Facebook is worth $15 billion, I have some oceanfront property in Las Vegas you might be interested in.
Is it a timeshare?
The technology is so done with it is not even worth the hardware and operating system the platform is running on.
The day Yahoo! closes it’s door will be the best day for Silcon Valley. It means we have turned the page to a new chapter and are serious about technology.
same goes for GM and the 1 gazillion homes sold for $1mio+
And again, this is a perfect example of how guys who are brilliant in one aspect, in this case technology, need to hire someone who is skilled in business to actually run operations.
Right now, everyone is creaming their pants over Zuckerberg. But his lack of experience/business acumen will catch up to him and put him in the same boat as Jerry Yang.
agreed, but not if he hires an actual CEO and not from an open source company like SUN one which has focus on profit.
Of course it’s always business people who say that companies need business people at the top.
Only Facebook and Twitter will survive. Because they pay Arrington.
who the ** is alice?
Hey that song was all over the radios in Germany in the 90’s
Hello everybody !!!
Ouch, that’s a hell of a lot of money or should I say market cap.
I still have my home page set to Yahoo because they are a one stop shop for sports, finance and headline news and do a damn good job. My question is this - why not look into getting into the vertical search market and pick up sites like Edmonds.com (www.edmonds.com) for cars, kayak.com (www.kayak.com) for travel, or theparty.net (www.theparty.net) for event planning? Vertical search does things that others cannot and that is reach users closer to the purchase and that should increase what they can charge for an ad.
Yahoo was about $10 after the crash of 2001 as well.
So you’re saying this is the second time they’ve been a miserable failure?
No… it will be a second time that you will make a mistake
I still have my home page set to Yahoo because they are a one stop shop for sports, finance and headline news and do a damn good job. My question is this - why not look into getting into the vertical search market and pick up sites like Edmonds.com (http://www.edmonds.com) for cars, kayak.com (http://www.kayak.com) for travel, or theparty.net (http://www.theparty.net) for event planning? Vertical search does things that others cannot and that is reach users closer to the purchase and that should increase what they can charge for an ad.
edmunds? autos.yahoo.com
kayak? travel.yahoo.com
event planning? upcoming.org
Honestly, who uses the yahoo autos site? Edmunds is so much better when it comes to information; yahoo travel does not do what kayak does; and upcoming is a party/event listing whereas theparty.net is a search tool for planning.
9% is no dip. That’s a plunge. And its down an additional 3% in after hours trading. Nasdaq only dropped 5%. Not to mention, YHOO was down yesterday. The BOD has responsibility for this.
Didn’t this already happen once like 6 years ago? O yeah thats right it did.
Hold it peeps. Put things into perspective..
Google peaked at $725 (52 wks), now at $291, loss of 60%
Yahoo peaked at $30.25 (52 wks, due to merger talks), now at 10.24, loss of 66%.
There are a lot of coulda shoulda in investment. Warren buffet paid $115 for GS stocks, now they are at $67.
I am still a believer in Yahoo. It just needs to focus on creating revenue streams in areas of strength and form strategic partnerships.
Ha! No Chance. Yahoo’s competitors (Google) will recover much faster than yahoo. Maybe it should line up @ the fed’s for hand outs.