Thursday, June 12, 2008

A Slight Margin of Error

After once being wooed by both Microsoft and News Corp, it looked like Yahoo was going to be the big winner in a tale of two futures. But their algorithm for playing one bid off the other was apparently a bit flawed (they thought they could get $37 per share out of Microsoft's initial $33 offer).

Today, Yahoo faced a 13 percent drop in share price over the news that Microsoft "unequivocally" wants nothing to do with the company. Ironically, Yahoo now finds itself paired up with an unlikely partner for ad revenue sharing--Google.

It may not be the dream deal they were hoping for, but at least it should help improve their algorithm.

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