It would be sad if it weren’t so funny. In an earlier post, I outlined that Yahoo’s deal with Google was a huge strategic fuck up. Now that Google has backed out of the deal that Yahoo! so desperately needed, Yahoo! is headed for disaster.
Yang has sold the deal as the salvation of Yahoo. Everyone with a functioning brain knew that Yahoo! desperately needed the deal and Google was only doing it to piss off Microsoft, but was far from necessary. Had the deal passed, Google would have slowly been a more and more important source of revenue. Once they knew Yahoo! couldn’t live without them, they’d pull the rug out from under them. It’s the harsh strategy of bringing somoene under your protection and then weakening them until they can no longer defend themselves. Then you throw them to the wolves.
$33 was the price. The stock is now worth $14/share. $33 was more than a fair premium for a company that had started it’s long slide into the Abyss. Why was this deal turned down? Ego. Jerry Yang’s ego took precedent over his primary responsiblity to the company and it’s shareholders. He violated a basic principle of business. Check your oversized ego at the door. It’s not about you, it’s about your company and the shareholders who have made you disgustingly rich.
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