Yahoo Falling
Over the last year or two, Yahoo hasn’t been doing so well. Their CEO, Terry Semel, stepped down last year. One of the founders, Jerry Yang, took over and embarked on a 100 day review of the company looking for ways to improve the situation. Recently he announced that they had evaluated priorities and will be laying off a good chunk of employees. Just after Yahoo’s most recent earnings report, Microsoft announced an unsolicited takeover bid. Microsoft is definitely taking advantage of the fact that Yahoo’s stock has recently fallen significantly recently. The offer is more than twice their current stock price making it seem like its a really good offer. We’ll see what happens. Will Yahoo accept the offer? Will Microsoft be able to acquire the company without breaching any laws?