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The Damaging Focus on Share Price

The recent news that Yahoo and FMI are in talks about MySpace makes me shudder, as does Jerry Yang’s acknowledgement of the “difficult task he faces to arrest the decline in the internet portal’s shares.”

From where I’m sitting, Yahoo’s going about their revitalization backwards already. Google and Apple drive their corporate decision making process with their overall strategies, worrying little about short-term share price effects; Yahoo drives its overall strategy and decision-making with knee jerk reactions to those share prices. Which approach do you think is more likely to lead to long-term success?

That’s why I feel any deal with FMI at this stage would be ill-conceived; its a share-manipulation stunt to give the board something to preen about, not a carefully considered move that fits into a long-term strategy (Apple’s style), or a wild bout of paradigm-shifting creativity (Google’s style).

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