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Deleveraging Continues

As leveraged assets go down in value, the leverage multiples go up. Adding to that multiple is the falling dollar and the fact that these assets are in reality debt deposits, not cash deposits, that were passed on in different forms to be leveraged over and over.

-Minyan Jim

Economic Snapshot: What other business can Yahoo go into if this whole online thing doesn't work out?

Minyanville Staff Nov 13, 2008 2:15 pm


	Our unscientific poll.

They say hindsight is 20/20, but in the case of Yahoo (YHOO) -- which has successfully botched one opportunity after another -- hindsight might as well be projected onto an IMAX screen.

Strike 1: Earlier this year, Yahoo turned down a merger with Microsoft (MSFT). CEO Jerry Yang felt the buyout offer of $31 per share undervalued the company.

Strike 2: Holding stubbornly firm to that sentiment, Yang declined even after Microsoft upped the offer by $5 billion, to $33 per share.

Strike 3: Months later, Yahoo lost an important advertising revenue deal with Google (GOOG), surrendering market share in the process.

(Incidentally, the current value of Yahoo's stock is hovering around $10.)

As the company enters crisis mode, Minyanville asks: What other business can Yahoo go into if this online thing doesn't work out?

Tags: MSFT, STOCK, YANG, PRICE, MICROSOFT, JERRY


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