Altaba Inc. (formerly Yahoo) Message Board

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Technology Stocks : Altaba Inc. (formerly Yahoo)

AABA 19.63

0.0%

Nov 6 4:00 PM EST

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To: LoLoLoLita who wrote (10324)	4/19/1998 2:21:00 AM
From: Michael Collings	Read Replies (1) of 27307

David: The problem is that with the inflated price of the stock, inflated prices will have to be paid. My company just bought out a competitor for 2 million (neither are public). The company we bought had revenues of about 8 million but were not profitable. Liken that to the 100 million Yahoo paid for Four11. Four11 had less than 4 million in revenues, no earnings and commanded 100 million. What's Yahoo going to buy? Infoseek for 3 billion in stock? This inflated stock price is not that positive for the company and it limits what they can buy because any acquisition that is not a profitable company dilutes the stock. If the whole industry is inflated what advantage is the stock at this price? It also means that the cash they have held is much less valuable than it was a year ago, at least for acquisitions. They probably would have been much smarter to have used the cash a year ago because today it will buy much less.

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