3 ms·
One thing that Yahoo highlights is the importance of why you need to take care of your share price. I've seen a few people here ask why a company would care ab
by chollida1 11y ago
One thing that Yahoo highlights is the importance of why you need to take care of your share price.
I've seen a few people here ask why a company would care about their share price after they've gone public. It affects your company both internally and externally.
Having a rising share price means you can play a different game than the rest of your competitors.
Internaly it helps hire and retain good employees. Ask anyone who started at Microsoft in 1990 and worked their for a decade, or Google from 2004 until 2014. I'd bet most of them would have gladly given up their salary for more option grants.
Externally it means Facebook can pay 15 Billion for WhatsApp. I'm sure Yahoo was very interested in WhatsApp, but
1) couldn't justify paying 15 Billion almost 1/2 of their value for the app
2) Who in their right mind would take Yahoo stock over FB stock?
Sadly everything is going wrong for Yahoo,
- Alibaba's shares have dropped since they went public
- it now looks like they are going to have to pay around 20% of their Alibaba holdings in tax ( about 7 Billion).
- Anyone who is going to buy some of their assets is going to have to pick up some money loosing businesses to get a deal done, which will make negotiations much tougher and probably mean the teams that get picked up are going to be cut down
My new favorite theory that is floating around is that Alibaba actually acquires Yahoo's Alibaba stake and Yahoo's front page. Microsoft still acquires the search assets and mail. Google acquires Flickr and the fantasy sports and finance are spun out into a new company./
- sbierwagen 11y agoMaybe throw some line breaks into that second <pre> block.