Yahoo is a sinking ship without effective management, an attractive product shelf, or much of a heartbeat left after years of getting jerked around by Yang & Bartz. To think that somehow legacy-titan Microsoft and the Canada Pension Plan Investment Board will be able to squeeze value out of it is ludicrous.
Private-equity firm Silver Lake Partners is working with one of its investors, the Canada Pension Plan Investment Board, and Microsoft Corp. to put together a proposal to buy Yahoo Inc., people familiar with the matter said. [WSJ]
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In fact, though, the CPP has been making a whole lot of great investments and have had amazing returns in this volatile economy. They will have done their due diligence thoroughly and, while no investment is certain, if they see something, then I suspect there is something there. Likely, that something is in Microsoft’s plans.
CPP has made a lot of premier technology investments in the last few years and made a super-killing on the purchase then sale of Skype, so I expect they know what they are doing here, even if I don’t.
Good perspective Ted – thanks for sharing the other side of the coin.
I’ve been looking at shortingYahoo, it’s a disaster from what I can see.
Agree with Ted. The CPP fund today is worth $153.2B. The CPPIB is doing something right.
Wow, where can I get a canada pension plan? It really is surprising to see how much this pension grant had in it, though. Maybe it will be good to see Yahoo under better management.