So how does it feel to have witnessed one of technology’s little miracles this week?
I mean Yahoo’s stock price
successfully defying gravity.
It’s as close as any of us will
ever get to an apparition of the Virgin Mary floating on a cloud without any
visible means of support.
Apparently Wall Street isn’t
convinced that Microsoft has indeed pushed on despite leaks that it has reached
out instead to Facebook, another company with an inflated view of itself.
Microsoft is supposedly
interested in buying the 98.4% of Facebook it doesn’t own. Remember last year
it took a 1.6% position in the social networking site for $240 million and
serves ads to the thing.
Facebook then thought it was
worth $15 billion. Goodness knows what it thinks now and whether founder Mark
Zuckerberg could bring himself to sell rather than IPO.
Facebook is expecting to do $300
million-$350 million in revenue this year, double or better last year, on the
back of 110 million visitors a month now.
The news has also leaked – great
how that happens – that Microsoft has released its slate of substitute
directors, the guys it was going to install at Yahoo if it made a hostile run
on the company.
They are now free to be nominated
by Yahoo’s own stockholders if the stockholders can stay angry long enough to
try to unseat Yahoo management all by themselves. They have to move in the next
few days. Yahoo set its stockholders meeting for July 3.
Microsoft folk like Bill Gates
and Craig Mundie have sent little messages through the press saying Microsoft
has washed its hands of Yahoo and its CEO, who effectively stood on a street
corner and lit a victory cigar with a $47.5 billion-dollar bill.
He’s apparently more comfortable sticking his head in the lion’s mouth and cutting a deal with Google, if he can get it. Google suddenly seems a lot more ambivalent than it was about helping out its rival. Google CEO Eric Schmidt said Thursday there was no deal yet, only reason to talk.