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.
Downloads and Drivers
From the Forums
Subscribe to TechSpot
Get free exclusive content, learn about new features and breaking tech news.