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Post-Microsoft, What's a Yahoo to Do?

Google deal risky, but analysts say company must prove its value

By Wesley Oliver,  Newser Staff

Posted May 4, 2008 5:24 PM CDT

(Newser) – High-fives broke out at Yahoo yesterday after Microsoft revoked its buyout bid, but founder Jerry Yang and colleagues may want to hold off on celebrations, the New York Times reports. Analysts expect the stock to tank tomorrow, shareholders are mulling legal action, key workers may walk, and an alliance with Google could prove disastrous.

“I don’t believe Jerry Yang was really looking out for my interest as a shareholder,” griped one investor. But after successful work with Google on search ads, Yahoo may find new life teaming up with its archrival. However Yahoo execs proceed post-Microsoft, one analyst says they need to prove the company’s value and “put their money where their mouth is.”

Google sometimes earns at least 60% more than Yahoo on some ad searches.
Google sometimes earns at least 60% more than Yahoo on some ad searches.   (AP Photo/Keystone, Walter Bier, file)
Microsoft CEO Steve Ballmer warned Yahoo that an alliance with Google would hurt the company.
Microsoft CEO Steve Ballmer warned Yahoo that an alliance with Google would hurt the company.   (AP Photo/Paul Sakuma)
Analysts expect Yahoo's stock price to sink tomorrow.
Analysts expect Yahoo's stock price to sink tomorrow.   (AP Photo/Mark Lennihan, file)
Yahoo CEO Jerry Yang may lose the support of his board, shareholders, and employees.
Yahoo CEO Jerry Yang may lose the support of his board, shareholders, and employees.   (AP Photo/Paul Sakuma, file)
Yahoo CEO Jerry Yang had the support of his board when he rejected Microsoft's offer.
Yahoo CEO Jerry Yang had the support of his board when he rejected Microsoft's offer.   (AP Photo/Paul Sakuma, file)
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