DirigoDev - 11:22 pm on Oct 26, 2011 (gmt 0)
What is the asking price and what is the current profit?
Taking Yahoo private could provide a massive ROI. EPS was .23 in Q3. They made $293m profit in that quarter which was down 26%. This is a firm with cash on hand still making a profit. This is not a distressed asset. They don't need to be way more cool because they own a huge chunk of the web. Stack a few good decisions on top of each other and bingo. $$$$$$$$
They are worth ~$14 billion. My little ol MBA and Finance degree says that for the right buyer this deal is golden. Google, no way. Microsoft - okay - but very sad. Apple, Cisco, IBM, Adobe, and a few private equity groups could all make it work. I bet even an old dog like Warren Buffett could turn it around without replacing much of the leadership.
The company just needs a visionary leader with free reign and no pressure from the street. Going public is sometimes a mistake.