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June 26, 2008Another Reorganization, Another Round of Yahoo Drama
Who can make sense of what's going on with Yahoo these days? With many predicting the demise of the company or its ultimate submission to Microsoft, the news seems to be changing day to day.
Today, Yahoo announced another realignment of its staff.
Yesterday, it sent a letter to its stockholders trying to sell them on why the agreement to display Google ads would "do more for stockholder value" than a Microsoft merger would have.
Charles Cooper of CNET suggested that the reorg would give yahoo a little bit of breathing room but would not solve long-term problems. Cooper wondered whether Microsoft would now go to "Defcon 1" in its attempts to battle the company leadership.
Ina Fried also of CNET reported that forces are now pushing for Microsoft to acquire only Yahoo's search business.
Of course, this led to wild fluctuations in Yahoo stock, with the stock rising briefly after a rumor that talks had been reopened and then a subsequent drop when the rumor was denied. Ultimately the shares closed up 3%, reports San Jose Mercury News.
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