Yahoo is either trying hard to squeeze more money out of the Redmond giant, or they’re truly enthusiastic about their prospects in the gloomy recession (stagflation, stagnation, pre-recession: call it as you will) days to come. Probably a bit of both.
In their most recent act of defiance, the folks at Yahoo unveiled a presentation that was shown to their investors back in December 2007, which shows the company’s strategy for the next three years. The strategy is, of course, optimistic: they’re going to double their cash flow from $1.9 billion to $3.7 billion in the next three years, and they plan to make $8.8 billlion in revenue in 2010.
Unfortunately, they’re forgetting that in December 2007 Dow Jones was some 1500 points higher than it is today, and a lot of crappy things have happened for the US economy in the meantime. Thus, what they predicted last year probably doesn’t hold water anymore; and let’s not forget that they weren’t doing all that well in 2007, either. There’s a reason why Microsoft went with an unsolicited bid - they knew where Yahoo was at and they knew where it was heading.
CNET notices an interesting statement from one of the presentation slides: “We believe our growth and profitability prospects are not fully appreciated by the public market.” Well, I’m sure that the management of Bear Stearns didn’t value their company at $2 per share, but the market is unrelenting and unforgiving when the bears are in charge.
ShareThis
