Yahoo Shows Microsoft, Wall Street What Its Really Worth

Yahoo has filed an investor presentation which projects its operating cash flow to increase from $1.9 billion to $3.7 billion over the next 3 years. An estimated $8.8 billion (excluding the cost of acquiring all of this traffic) is expected as a result.

Basically, Yahoo is saying “Hey, Microsoft, we’re worth far more than the paltry $44 billion you offered us.” But if you really want the corporate speak here it is:

“Yahoo! is positioned for accelerated financial growth – we have a powerful consumer brand, a huge global audience and a highly profitable operating model,” said Jerry Yang, the Company’s co-founder and chief executive officer. “With industry-leading tools, technology, people and platforms, Yahoo! is poised to capture growth in display advertising where we believe growth will be greatest. Combined with our recent progress in search monetization, Yahoo! is well positioned to provide the broadest range of products to our advertisers while delivering the most compelling experiences to users.”

The numbers are in line with other reports suggesting that search and online advertising is expected to continue growing over the coming years and that search spending is growing despite the gloom and doom in the economy-at-large. However, many analysts see Google taking a big land grab on the growth – not Yahoo.

Yahoo’s stock rose today in the wake of the report, though it may be receiving a boost from anticipation over another Fed rate cut and Q1 banking reports coming in higher than expected, just one day after Bear Stearns incurred a major freefall and took the broader market along for the ride. Yahoo trailed the overall gains in the NASDAQ market at the time of this report.

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