I knew Yahoo! had lost its marbles when it implemented those pricey severance package deals. Think about it, a big option for YHOO would be private equity, but any PE buyer would want to lay off 10-25% of YHOO staff to make the numbers add up.
Yet that is not really an option because it would add $1-3B to the cost of the deal. That’s something that MSFT balked at [albeit temporarily] and PE did too.
And let’s not talk about the ill-fated dalliance with Google, no wonder MSFT finds YHOO less desirable after such a deal. That is like finding out that your soon-to-be wife isn’t much of a virgin after all.
Anyway, add it all up and no wonder Yang is backtracking already and suggesting he is open to a deal.
I am glad I sold 95% of my holdings.
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