Yahoo! misses Q1 earnings, Microsoft drops bid, then swoops back in

The Standard — Wed, 12 Mar 2008 14:02:32 -0700

Looks like the community was right -- today Yahoo! beat expectations. Total revenue for the quarter was $1.8 billion, net revenues were $1.35 billion. Net Income was $542 million, or $0.37 per share. Therefore, the first condition of this prediction has not been met. --The Industry Standard

Henry Blodget, via Kara Swisher, lays out the following possible scenario:

“Microsoft goes about its business until early April--nominating its slate of board members, preparing for a hostile shareholder meeting--and then, just after Yahoo reports a horrendous first quarter, pulls its offer for the company. Yahoo's stock collapses, costing shareholders 40% overnight. Jerry & Co. are pummeled with shareholder complaints and lawsuits, and Yahoo's employee and shareholder morale hit all-time low. Then, just when all hope seems lost, Microsoft comes charging back and saves the day with a $25 bid, and Yahoo owners flatten Jerry & Co. in a stampede to tender their shares.”

This is a prediction that must meet three conditions in order to be judged favorably:

First, Yahoo misses its Q1 earnings estimates.
Second, MSFT withdraws its current bid for Yahoo!
Third, MSFT brings forth a new bid in the $23-27 range.

These conditions do NOT require that Yahoo! actually accept the new bid (although in that case it would seem likely). Above Blodget says that MSFT will “save the day” – but again, the success or lack thereof of the new bid is outside of the scope of this prediction.

Yahoo! misses Q1 earnings, Microsoft drops bid, then swoops back in

The Standard — Wed, 12 Mar 2008 14:02:32 -0700

Henry Blodget, via Kara Swisher, lays out the following possible scenario:

This is a prediction that must meet three conditions in order to be judged favorably:

First, Yahoo misses its Q1 earnings estimates.
Second, MSFT withdraws its current bid for Yahoo!
Third, MSFT brings forth a new bid in the $23-27 range.

Yahoo! misses Q1 earnings, Microsoft drops bid, then swoops back in

The Standard — Wed, 12 Mar 2008 14:02:32 -0700

Henry Blodget, via Kara Swisher, lays out the following possible scenario:

This is a prediction that must meet three conditions in order to be judged favorably:

First, Yahoo misses its Q1 earnings estimates.
Second, MSFT withdraws its current bid for Yahoo!
Third, MSFT brings forth a new bid in the $23-27 range.

Yahoo! misses Q1 earnings, Microsoft drops bid, then swoops back in

The Standard — Wed, 12 Mar 2008 14:02:32 -0700

Henry Blodget, via Kara Swisher, lays out the following possible scenario:

This is a prediction that must meet three conditions in order to be judged favorably:

First, Yahoo misses its Q1 earnings estimates.
Second, MSFT withdraws its current bid for Yahoo!
Third, MSFT brings forth a new bid in the $23-27 range.