Yahoo shares fall on Justice Department investigation
YAHOO SHAREHOLDERS, already shafted because the search outfit refused to deal with Microsoft, are panicking that the US Department of Justice is about to take the company to the cleaners.
The outfit's share price fell yesterday as the DoJ announced it had hired an antitrust litigator to review evidence for a possible legal challenge to the deal with Google.
Sanford Litvack, a former bigwig at Disney and chief of the Justice Department's antitrust division during the Carter administration, has taken the job.
A Spokesyahoodler said that no one should panic about the news as the DoJ hired antitrust consultants all the time. The fact that Litvack is an award-winning rabid legal pitbull was just formality.
Yahoo said that it remains confident that the deal was lawful and will clear all regulatory hurdles.
It must be nice to be that self-confident. You can go far with that level of self-assurance, after all it worked for Microsoft, right up until the moment it didn't.
Analysts say that Google and Yahoo have a steep hill to climb and might need a hot air balloon and oxygen for the last bit.
Meanwhile Yahoo shareholders are running away knowing that before the antitrust situation is up, stock prices are going to fall fast.
Yahoo shares fell $0.68 to $17.58 yesterday. ยต
L'Inq
AP
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Microsoft of course wants to do anything to get in Google's way, but it is even more to their benefit to hamstring Yahoo's attempt to work with Google. That leaves them with fewer options so they will eventually have to sell to Microsoft, and probably at a lower price than was on offer before.