Yahoo stock falls around 19 percent: Shareholders unhappy, can it go lower

It’s only been a day since Microsoft Corp announced that it was withdrawing the proposal to acquire Yahoo! Inc, now today we see Yahoo’s Stock fall sharply, although this was expected. In the early trading today we could see Yahoo stock drop as much as 19 percent, but the current $23 is still more than it was before Microsoft made their bid on the 31st of January.

The $31-per-share offer from Microsoft was a good one and they may have gone much higher if Yahoo would of considered it, the real problem for Yahoo now is the shareholders. They are not happy and I am sure many Yahoo shareholders are wondering if this is the bottom yet.

We are also hearing that some “top Yahoo executives are also dismayed that the merger discussions collapsed over the weekend”, was it an ego thing to turn down Microsoft? Surely that would not be the case, as we are talking big numbers here.

The future is very uncertain for both Microsoft’s search business and Yahoo’s share prices, as without Yahoo, it looks impossible for Microsoft to take the number two spot in search. The bad news for Yahoo is it looks like there are hard roads ahead for the stock to get back to middle twenty dollars.

What’s your view on the Yahoo/Microsoft story?

Wired said, “Bill Miller, a behind-the-scenes player in Microsoft-Yahoo talks, may have had a hand in the collapse of the deal“. Read that story here.

Nokia Tube: should shareholders be worried?

Following on from Mark’s post earlier today about the Nokia Tube, a cellphone/handheld computer that’s aiming its targets at the Apple iPhone. We had a comment early today on PR that raises an interesting question about Apple’s rule over the high-end phone market.

The reason Apple could rule this market is because the future of the so-called phone is more of a handheld computer/do everything device.

Here is what Arn said:
It’s a hand-held computer that just so happens to have voice capability market, and without a unified approach to the OS and application development, Nokia and the other manufacturers are fragmenting their market share into all these “specialist” phones that only appeal to small niches. They are nullifying the only advantage they have, size.

So they own a huge share of a commodity market. Ask Dell how that’s working out. What good is it if they can’t parlay a leadership position in the current handset market into a large share of this new handheld computer market.

Do you agree and what’s your view of the Apple iPhone and the Nokia Tube taking its market share?

Microsoft gives Yahoo three week ultimatum: Accept our offer

Microsoft has given Yahoo an ultimatum, either accept our offer within three weeks or we will lower our offer and then go direct to your shareholders. This big threat comes in the wake of the ongoing fight between two of the largest search engines.

Yahoo executives have rejected Microsoft’s $42 billion bid as they feel that the offer is too low. Steve Ballmer Microsoft’s chief exec has now deiced to play hardball, which is why they gave Yahoo the ultimatum.

Microsoft do not want this critically important opportunity to pass them by, it is thought that Yahoo will respond today.

Source – PC Pro