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Is Yahoo Worth $44.6 billion?

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Complicating things, of course, is the fact that reliable ways of measuring Web traffic--and, hence, any company's ad revenue potential--is still as much art as science. As for Microsoft's valuation of Yahoo, it's about right for a high roller, some analysts say. "If you're Steve Balmer and want to be the Donald Trump of the Web, you want the most-viewed properties on the Web. Well, Yahoo's got 'em," says Beyers, adding, however, that investors might want to keep their own passion in check and think back to the last tech bubble. "I'm not a bear, but I'm careful when it comes to tech investments right now."

© 2008

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Member Comments

  • Posted By: gabriel1133 @ 02/19/2008 10:27:56 PM

    Dear Stockholders,

    We have no choice but to accept Microsoft's offer. I don't want our company to be involved in a proxy war which will just end up Microsoft winning it by a mile. I have suggested to name the company Yahoo by Microsoft so as not to lose our identity and brand. Either way, if they insist on putting their name together with Yahoo then I am not considering MicroWho? because it is a kitchen appliance like a Microhood. I like the idea of naming it Yahoo by Microsoft or YAHMIC! This way, our brand Yahoo will always come first.

    This will be a great company and we are moving quickly to make it come true.

    Billy Yang,

    YahMic! Inc.

  • Posted By: roulej @ 02/05/2008 11:16:34 AM

    Is Yahoo worth $44.6 billion? Of course not!

    However, it is worth $44.6 billion to prevent a company renowned for aggressive, if not monopolistic, strategies. Microsoft's control over Yahoo's current services will only reduce choice and, yes, raise risks (if not prices) for consumers. The problem is that only advertisers know how much money can be generated from Yahoo properties. The click count is practically irrelevant now that data mining has become the fundamental purpose of the internet. Google bought Doubleclick so that it can bolster its dossier on every consumer (or at least, their IP address) who searches for anything. Microsoft, likewise, wants to know more about you than your own mother.

    Why isn't Yahoo raking in billions in profits every year like these two gorillas of the industry? Simple - it's not playing from the same MS / Doubleclick dirty underhanded trick book. Given the well-documented Windows vulnerabilities on a personal computer, who in their right mind would entrust a new, bigger MSNahoo with all their private information? At least Google ads and cookies can be blocked by savvy internet users. If Microsoft leverages itself to own more internet properties, Windows users will have no defense against Redmond's inquisitive prying eyes.

    This Yahoo customer will immediately unsubscribe if MS prevails in its hostile takeover bid.

  • Posted By: marshalltaylorbicycles @ 02/03/2008 8:46:56 PM

    $44.6 Billion?! Wow Microsoft ain't playin.

    Check out my blog at: http://marshalltaylor.blogspot.com

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