Yahoo: Buy us please Microsoft

Yahoo Co-founder and CEO Jerry Yang has suggested Microsoft buying Yahoo would be "the best thing".

At the Web 2.0 Summit in San Francisco, California, Yang said "To this day the best thing for Microsoft to do is buy Yahoo....I don't think that is a bad idea at all, at the right price whatever that price is. We're willing to sell the company."

Yahoo declined a bid from Microsoft for $33 (£21) a share from Microsoft back in May. Since then Yahoo shares have plummeted and Microsoft publicly stated it no longer had any interest in buying Yahoo.

Yang was questioned by one audience member regarding Yahoo's rejection of the Microsoft offer. "They walked away from a public offering and we were ready to negotiate. We wanted to negotiate a deal. We felt we weren't that far apart.

"At the end of the day, they withdrew and they have since been clear about not wanting to buy the company," explained Mr Yang.

Microsoft has not commented on Yangs latest revelations. If Microsoft were to buy Yahoo now they would get a good bargain compared to back in May. Since May the shares have dropped from $28.67 to $13.92 at the time of writing.

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I think MS were pretty serious when they said they are no longer interested in Yahoo! I don't think they will buy them. Considering Yahoo! spat in their faces even after the generous offer MS made, MS should return the favor All that said Yahoo! won't go under, probably when they hit [very] rock bottom, some upstart company will buy them probably.

"To this day the best thing for Microsoft to do is buy Yahoo..."

OOPS! You mean the best thing for YAHOO is to be bought by Microsoft. Sorry, you had your chance and now you have to face the consequences. Don't blame Microsoft - they offered, you declined. Begging will only lower your stock price further.

I'm glad this happened to Yahoo, most comments on the MS takeover were negative, now see them suffer the consequences =-D

I think Microsoft should just say to them you've missed the boat, and go after AOL and Face Book for a bit then come back when Yahoo are in real trouble. Offer 20 billion tops Microsoft.

I knew it! Microsoft just had to wait out Yahoo a little bit more, and could potentially pick up Yahoo for a lot less then $31 / share.

Without considering any speculative variable: (for P/E the least is the best for investor and shareholder).
MSFT P/E (ttm): 11.67 (Microsoft) Or if you spend $100 in Microsoft, you will earn $8.56 dollars, it is not a gold mine but still fine.
AAPL P/E (ttm): 19.28 (Apple)
YHOO P/E (ttm): 20.87 (Yahoo)
So, the current price per each Yahoo's share is somethat fair, not so good but a bit near to Apple.

Google instead (suprise, surprise):
GOOG P/E (ttm): 21.3 (Google) Or if you spend $100 in Google, you will earn only $4.69 dollars.
In this case, Steve Ballmer is so damn right.

Erm P/E ratio does not mean that.
P/E ratio of 20 means that the price of the stock is 20 times the earnings/stock of the company. It doesn't mean how much you will earn. P/E is used to see if a company is overvalued or under valued. Not how much you are getting.

Dividend payout ratio is how much an invester will earn by holding shares.

Yahoo are better at the whole web portal thing compared to the mess MSN so that would be good. Then you have Flickr which I think MS would actually make better for free users. Stuff like that. I think MS will eventually buy them very cheap.

$5 per share? MS would probably pioneer cloud computing with their 'Azure' with absolutely no interest of yahoo by then.

If they do put a offer this time it'll just be for 2 or 3 parts of Yahoo, not the whole thing. First part being the Search unit, and then a few key sites that get alot of traffic. The rest can be sold off to someone else or just die.

KavazovAngel said,
Now offer them 15$ per share. If they don't like that too, wait few months, maybe the price will fall to 5$ per share. :)

Quite right!