That didn't take long

Over the weekend I wrote an article about what a Yahoo shareholder would do with a copy of Steve Ballmer's letter to Jerry Yang. Well, it didn't take very long for a class action law suit being filed, led by two pension funds. Attorneys for the pension funds said, "The actions taken by Yahoo's CEO this past weekend confirm that the company's board of directors pursued all manner of value-destructive third-party deals to fight off Microsoft's bid". The attorneys further claim that Yang never negotiated with Microsoft in good faith.

Not everyone thinks this way about the deal though. Steven Vaughan-Nichols over at ComputerWorld thinks that business textbooks in 2025 will show that Microsoft's slow collapse will be accelerated by Steve Ballmer blowing the Yahoo deal. I think he is wrong. I think business classes will look at Yang's failure to lock this deal up for such a premium over current price will be studied as not only a blunder but a classic case letting ones pride and ego get in the way of what is best for the shareholders. I think in addition to the lawsuits, look for Wall Street to now start punishing the stock as well. I stick with my prediction, Yahoo has no where to go but down. They will wind up getting acquired for significantly less within 24 to 36 months.