Yahoo is making some interesting claims as they continue to play hard-to-get in the mating dance with current suitor Microsoft. Today Yahoo said Microsoft's $44.6 billion buyout bid is

too low because Yahoo expects their annual revenue to soar to $8.8 billion by 2010 - even though Wall Street analysts think it will be considerably less - around $7.1 billion.

On her blog at MediaPost.com Wendy Davis posted some interesting information from an SEC filing that Yahoo made today. Yahoo said it is strong in display advertising and that display will enjoy stronger growth than search advertising in the years ahead. In its SEC filing the company said "Display is a larger opportunity than search and we are positioned to extend our leadership in display."

The company also commented on other factors they think make Yahoo worth more than Microsoft is offering, saying the acquisition would boost “Microsoft from a sub-scale position to strong positions in search and display” and also give Microsoft a stronger stake in Asia, where Yahoo has solid partnerships. Davis concluded "despite Yahoo’s stance that $31 a share is too low, the report doesn’t argue against a merger in principle. If anything, when combined with reports that Yahoo and Microsoft are in negotiations, it seems to signal that Yahoo’s leadership realizes its acquisition is likely inevitable."
(Posted March 18, 2008)