the market will speak today on what it thinks yhoo is really worth; and it's alot closer to $20 than yang's dream of $37. msft may be back in time - at about $15 a share, that is.
after reporting its december quarter results, the market said yhoo's stock was only worth $19.05. little did the market realize that from jerry yang's perspective, it was really worth more than twice that amount? yeah....right.
over the next several months, mr. yang and the shareholders are going to find out what the markets say yhoo is worth.
but shareholders should take little comfort from mr. yang's handling of the situation over the last few months. first he turned for advice to the company that has eaten his lunch for years. then he looked for a white knight and found none (says alot). next he added to msft's cost with the introduction of a generous severance package for all yahooligans. and now, he appears to have overreached.
yang now has exactly what he wanted all along, the opportunity to turn his company around. let's all wish him luck! however, since he helped contribute to the company's current state, the odds are not in his favor.
disclosure: thinking of buying yhoo puts with a strike at 15 expiring in january