Bill Miller on Yahoo/Microsoft: Coulda, Shoulda, Woulda
Bill Miller of Legg Mason, Yahoo's sub-performing second-largest institutional shareholder, gave an interview today to the NY Times wherein he opined on opportunities missed, etc. in the now-defunct MSFT/YHOO deal.
Some highlights, the first one of which in particular struck me:
- There was a deal to be had at $35 that he and other big shareholders supported, and he was surprised Microsoft didn't work harder to get it. We have now heard that both Yahoo's Yang and Miller were puzzled Microsoft didn't counter Yahoo's $37 position on Saturday. I think this is, far from pricing discipline, as Goldman Sachs says in a note tonight, further fuzzy and undisciplined thinking on Steve Ballmer's part.
- Miller thinks Microsoft had no choice here, and that not going forward was a big strategic blunder. Admittedly, he would say that as a major shareholder, but it's at least an arguable point -- and one with which I generally agree.
- He now expects Yahoo to do a major share buyback, and will be pissed if it doesn't.
- He does not like the idea of an AOL tie-up, and is only somewhat more fond of a limited advertising tie-up with Google. His argument: Why didn't Yahoo management do either deal before Microsoft came along? Good question, Mr. Bill.
More here.
