ThePanelist.com - Out of Yahoo and Other Options

Out of Yahoo and Other Options

Written by David Neubert

Thursday, 06 March 2008

Realizing that in the short run Yahoo management doesn't seem to have my best interest at heart, I sold all of my Yahoo! (YHOO - $28.67 ) shares at around $28.75, which allows me to lock in most of the merger premium if inaction by Yahoo management drives the stock back to $20. Just in case, I did pay just over a buck for 30 strike calls. If someone does pay up, I will at least get to participate in the upside.

Randall Smyth makes an interesting case for a potential eBay (EBAY - 26.74) Yahoo tie up. While the tie up may be good for the competitive marketplace, it doesn't seem to do as much for Yahoo shareholders as Microsoft (MSFT - $28.12) was willing to do.

For my favorite and most articulate coverage of Microsoft Yahoo Merger, see Henry Blodget at Silicon Alley Insider.

Disclosure: I own EBAY and MSFT. I own 30 strike calls on YHOO that expire in April and July. I am short (sold) January 2009 40 strike calls on eBay.