Recently Yahoo (NASDAQ:YHOO) has seem more inclined towards selling its Asian assets and not becoming a take-over target itself, [1] which came as a spoiler for investors. This morning reports are surfacing that Yahoo founder Jerry Yang is trying to find private equity backers to help management lever up to take a bigger stake in the company. [2] The saga over Yahoo’s fate seems to continue as the company attempts to show that its display advertising business still holds promise amidst competition from Google (NASDAQ:GOOG) and Facebook.
See our full analysis for Yahoo’s stock here
Yahoo Exec’s Seems Adamant to Remain in Drivers’ Seat
With Yahoo recently announcing a $270 million cash purchase to buy Interclick, [3] the company wants to monetize its display ad business further. The latter provides advanced tools to help marketers target online users/customers and seems to indicate that Yahoo’s resolve to stick to its core online ads business is still alive.
Unfortunately, Yahoo’s stock has not shown the same enthusiasm. With shareholders being optimistic over a possible sell-off of the company to prospective bidders like Alibaba, speculation of a “no-show” can keep the stock under pressure for a while. This also reflects that more than Yahoo’s core business itself as investors are skeptical over the company’s leadership and whether it is capable enough to steer the company out of troubled waters.
We have a price estimate of $17 for Yahoo’s stock, which is about 13% above the current market price.
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