SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Venditâ„¢ who wrote (21325)4/10/1999 3:18:00 PM
From: Dave Mansfield  Read Replies (1) of 27307
 
Dave why do you think those two mergers will have a negative effect on Yahoo's earnings?

Vendit,

Check out both companies. Both have yet to earn a profit. They will not for some time after the merger. Mergers usually make this situation worse. Hence:
* More shares outstanding due to the dilutive effect of the stock buyout.
* Reduction in earnings as both companies bring losses to offset Yahoos earnings.
* Thus less earnings divided by more shares outstanding so less earnings per share.

Dave
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext