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Yahoo’s Inglorious End

Published 07/25/2016, 11:11 AM
Updated 07/09/2023, 06:31 AM

I stand by my statement that Yahoo (NASDAQ:YHOO) has always been a piece of garbage, and were it not for its accidental investment in Alibaba (NYSE:BABA), it probably would have gone belly-up years ago.

Astonishing footnote: Yahoo is being sold for just FOUR times what it paid for Tumblr, which Yahoo then drove into the ground.

And now, Yahoo's charred remains are being purchased by Verizon (NYSE:VZ) for less than one TENTH the price Microsoft (NASDAQ:MSFT) offered nearly a decade ago. Don’t let the chart fool you: although it shows Yahoo’s stock price is the same as it was in January 1999 (which in itself is pretty dismal), virtually the entire value in this price is represented by the aforementioned Alibaba investment. They got lucky, just like CEO Marissa Mayer, who stands to take a $300 million payday just by hanging around long enough to get the company sold.

Yahoo's Alibaba-Driven Valuation

Latest comments

Yahoo did not accidentally rise overnight to its peak value where Microsoft made a $44.6 billion bid. Though I do agree that the BABA investment was fortunate. Jerry Yang made a great choice to invest in BABA but he was also the one to deny the Microsoft bid. Maybe if Jerry Yang stayed on, Yahoo wouldn't be where it is today. I suppose we'll never know now.
DOA..all it needed was a mic in the search for parody..Then tie it into a phone icon, directory opens pick one ,hit dial..beat Google..There is so much more,but NOT for free..
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