-- Google Finance, Govt, Policy and Business Issues
---- Google about to make a bid for Yahoo . "Indirectly"
Quadrille - 10:14 pm on Oct 24, 2011 (gmt 0)
Why does Yahoo need to sell? They have ~$2.1 billion in cash and short-term investments. About 20% of the revenue drops to profit. So why sell?
Because Yahoo! has halved in value over the last year, and next year will be as bad (or worse). Exactly why Google wouldn't touch it with a barge pole - but would be happy to see someone else waste, sorry, spend, their money.
If you have shares, be advised that it is only the prospect of a sale that is holding the price up; one more farce like the Y-M$ broken engagement, and Y! shares will hit a new low - and stay there.
In fact, it wouldn't surprise me at all to find that the current round of rumours has been set up to keep the share price up - probably by someone anxious to get out before it's too late.
People knock rats for leaving sinking ships - but they'd be pretty poorly advised to stay on board.