Yahoo (Nasdaq:YHOO) has a special advantage when attracting talent or new deals. Stock price. Yup you read correctly stock price. Yahoo has been beaten up and down. The downside risk is fairly small. Google is a risk. Facebook is a disaster waiting to splat on the pavement. Microsoft is now a grand daddy tech utility like IBM.
Yahoo has $2 Billion in the bank and another some $6 Billion coming within weeks. That does make for a substantial cash pile but it can be beaten. What you can argue is the price is oversold and will continue to rise in the future. So watch for deals with a substantial stock exchange component. Staff and newly acquired ventures will appreciate the appreciation value of Yahoo and go for a ride. Then the cash can be deployed to build out products and services.
George Gutowski writes from a caveat emptor perspective.
- Yahoo Steals from Google. Was There a Non Compete Clause? $YHOO $GOOG $WMT #Governance (financialskeptic.wordpress.com)
- Infrastructure VP Bechtel Leaves Yahoo For Apple (valuewalk.com)
- Yahoo! CEO Pay Package Is Cheap, If Company Gets Fixed (247wallst.com)