Like the names in the title of this entry, the rumor of Microsoft buying out Yahoo! is silly. So let's get the details on this deal:
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"Shares of Yahoo Inc. soared as much as 19 percent to their highest level in nearly a year on Friday after two newspaper reports said the company and Microsoft Corp. were in preliminary merger talks to take on common foe Google Inc."
later that day...
"About 15 minutes before the end of Friday's session, the Wall Street Journal, citing a source, reported that merger talks with Microsoft were 'not active.'"
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So when I woke up Friday Morning and saw Yahoo! at 33.4 and read the hot air, the first thing I did was made sure my mother and fiance sold all the Yahoo! they had and then the moment after, I shorted the hell out of it. There is no way that this is going to happen. There are too many issues with this. The ones that stand out to me are:
1) Yang and Filo (The founders of Yahoo!) hate Microsoft. Executive support is sorta important in decisions like this ya know?
2) They're selling when Project Panama (Yahoo!'s new ad platform that's supposed to help them compete with Google) hasn't even had a chance to take off. And what's the point of selling now? All the Panama hype was already killed after Q1 earnings reports.
3) Culture Clash: There will be a mass Yahoo! employee exodus if Microsoft succeeds.
4) Anti-trust concerns
I don't know about you all, but I'm going to ride this hot air balloon back down to earth.
And while you're at it short Microsoft too. A bunch of companies are creating online tools so you'l never need to buy word, excel, powerpoint ever again.
Notes:
In Portfolio: You mean out right? I just sold shares I don't own.
Duration: Will be short. It'll hit the 20's soon and I'll cover then.
If athletes were stock: Dirk Nowitzki just crashed.
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