The cons of the proposed deal are pretty evident. Yahoo has been in a major financial slump which, despite the best efforts of CEO Jerry Yang, doesn’t seem to be improving; hell, the company decided to lay off 1000 people, or seven percent of its workforce, just a few weeks ago, and it seems like the only reason the stock is doing so well these days is precisely because of a likely hostile takeover by Microsoft. $42 billion is an enormous sum to pay out for a company whose economic future is shaky, and whose net revenue is hovering around $6.5 billion a year; at that rate, Microsoft probably won’t start seeing positive cash flow from the deal until 10 years later, a long time span for an industry so volatile.
Read the complete article at Neowin.
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