4 ms·
Lots of expensive acquisitions. Was Mayer known for being good at capital allocation/m&a at Google? I've got the feeling this isn't going to end well.
by riggins 13y ago
Lots of expensive acquisitions.
Was Mayer known for being good at capital allocation/m&a at Google? I've got the feeling this isn't going to end well.
- MichaelApproved 13y agoI agree that I don't think it will end well but their stock price has been going up so these expensive acquisitions are paying off, at least in the short run. It's also making these "expensive" acquisitions, not so expensive since they have more capital to use. They must integrate these assets quickly and do it well or it'll be over for Yahoo. Historically, successful acquisitions on a large scale have not been easy to do.
- msellout 13y agoWhy would the increase of the stock price increase Yahoo's available capital? Are they making acquisitions via stock swaps? Is their cost of capital decreasing?
- pyre 13y ago| Are they making acquisitions via stock swaps? That's one way. There are ways for Yahoo! to create more stocks and sell them, or sell stocks that are currently held by the company.
- MichaelApproved 13y agoAren't most of these acquisitions done with Yahoo! stock? Doesn't an increase in their stock value give them more capital for the transactions?