Yahoo Fending Off Takeover Advances
A low stock price has plenty of firms interested in buying Yahoo, and the company may find it impossible to say no to them.
Barring a dramatic turnaround in Yahoo’s fortunes, the company could be ripe for a takeover. A number of big names would love to have Yahoo’s traffic and services.
Among the names listed in the New York Post, AOL, AT&T, CBS, Comcast, Microsoft, Viacom and News Corp have expressed interest. So have private equity firms, salivating at Yahoo’s sub-$24 stock price.
“Jerry Yang and David Filo still don’t want to sell the struggling Internet company, but its stock price is so low that the duo may not be able to fend off a takeover offer without compromising their fiduciary duty to shareholders,” the Post said.
Time is running out for turning things around at Yahoo, which announces Q4 2007 earnings next week. Seeking Alpha said how much time depends “on fourth quarter results, how aggressive the layoffs are and what kind of guidance Yahoo issues to analysts when it reports earnings and holds a conference call with analysts on Jan. 29 to discuss its future plans.”
Rumored layoffs at Yahoo have been claimed to target from 700 to 2,500 people, but actual numbers have not been disclosed. Cuts in underperforming European operations, and possibly in China, may be looming.