Yahoo!’s Stock Hits It’s Lowest In 5 Years

Posted Sep 4, 2008

Yahoo Inc. (NASDAQ:YHOO) is not looking good on Wall St. The stock is trading at $17.75 per share right now and now their market cap is at less than $25 billion. Google’s market cap is close to 6 times that amount. The last time Yahoo! was trading for around $17 was around September 2003.

Over the last 9 months, Yahoo! has been facing pressure from shareholders are they constantly refused an acquisition deal from Microsoft Corporation (NASDAQ:MSFT). The only outcome from this decision was that Yahoo! plans to outsource their advertising to Google Inc. (NASDAQ:GOOG) and Carl Icahn joined Yahoo!’s Board. Microsoft’s acquisition offer was $47.5 billion, or about double of Yahoo!’s current value.

Jerry Yang, the current CEO of Yahoo! is facing the most amount of pressure for justifying the decline of the acquisition bid. Carl Icahn, who currently sits on the Board was pushing for the firing of Yang the most by arranging his own slate of Directors. Icahn was successfully able to get himself and two others on the Yahoo! Board as part of a settlement. The two others are Frank Biondi Jr. and John Chapple.

U.S. antitrust regulators are currently reviewing whether the partnership between Yahoo! and Google will monopolize the search advertising. Google and Yahoo! will control about 80% of search advertising in the U.S.

In Yahoo!’s weak state, Microsoft’s struggle to keep up, and Google’s dominance in search, the world is just asking for additional search competitors. And guess what… it’s not Cuil.