I’m feeling kind of smart today after feeling stupid *yesterday*. I had doubled my Yahoo stake before the earnings call, wrongly thinking that a good report was in store. However just fair earnings and poor guidance knocked the stock back a few dollars the next day. But it’s surging today as Microsoft has offered 44.6 billion for Yahoo, effectively making it worth a lot more than yesterday.
Perhaps the price hit after earnings drove Yahoo to some sort of strike point for Microsoft. At CES I think I may have been right to suggest there were high level meetings between Gates and Yang regarding a Microsoft Yahoo Merger , clearly MS must have been thinking about this for some time. Rumors have been swirling for over a year.
One of the things I left out of my earlier David Filo interview post were the details of Jerry Yang’s talk, which I’d have to say was lackluster given the amount of attention the markets are paying to Yahoo leadership right now, and given the slick pizzaz of yesterday’s Gates keynote. (C’mon Jerry – no Guitar Hero action?). Yahoo spent a lot of time talking about and “introducing” Yahoo Go” Version 3, a product I’m not familiar with but Yahoo treated as if it was a household word. It looked a lot like the MS mobile phone innovations and offered excellent info+browser+mapping+data integration for phones. Also announced was an expansion of mobile and widget platforms to make them more “open” and therefore more appealing to developers, though I’m not clear how significant this will be. Yahoo, like Microsoft yesterday, noted that they are looking at *billions* of mobile users and that although PCs are still important to them it’s clear that mobile is the bright and shining star where innovation will be happening.
Disclaimer: I’ve got some Yahoo Stock, but none of it was helped by this post.