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If Yahoo Is Being Prepped for Sale, At What Price? E-mail
Written by David Neubert   
Tuesday, 01 January 2008

Ashkan Karbasfrooshan writes about a potential sale of Yahoo.

But with a market cap of $33 billion (minus $2 billion in cash) that doesn’t leave many potential buyers with enough market cap to swallow Yahoo. All the buyers/partners that are big enough, like Microsoft and Google, are already competing with Yahoo, so they aren't really buyers. I think the sale could happen, but at a lower price. A potential sale/merger puts a floor on the stock, but I don’t think it provides much upside.

Disclosure: I am long YHOO and MSFT. I am short 25 and 35 strike calls on YHOO.


David Neubert  MSFT  YHOO 

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David Neubert
About the author:
David Neubert ran the largest trading desk in the world.
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Last Updated ( Sunday, 13 January 2008 )
 
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