Yahoo dipped again today (as did the market in general), down nearly 9% to $10.34. That means they’ve officially destroyed $31 billion in shareholder value since turning down Microsoft’s acquisition offer earlier this year. We now remember the good ‘ol days back in June when the stock price was in the twenties.
If you go by Facebook’s official valuation of $15 billion, it’s now worth more than Yahoo’s $14.33 billion.
Analysts are saying they have to ditch search, and fast, because the costs of competing with Google mean they are letting their display ad business languish. They barely have enough resources to fight one advertising war, let alone two.
As I’ve said before, we can all be confident that the Yahoo stock price won’t drop much more, because it can’t go below zero.
Yahoo needs to outsource their search to Microsoft to even have a chance of staying relevant. But before that, Yang needs to step down. There’s no face-saving move left for him. New leadership is needed before there’s nothing left to lead.