We see this time after time in the business world: an individual or a company overestimates their own value, leading to a disappointing sale price later on. Since 2008, Yahoo and all other competitors have fallen by the wayside while Google has increasingly dominated the market. Verizon, for its part, is getting a great deal relatively speaking. Even so, will they be able to salvage Yahoo?
Yahoo's board of directors severely overestimated the value of their company in 2008. That year, Microsoft offered to buy Yahoo for $44 Billion. The company rejected that offer believing that Yahoo was worth more. Verizon is set to buy Yahoo for just a fraction of what Microsoft offered to pay. Therefore, it is clear that Yahoo was not worthy anywhere near $44 Billion.
Microsoft offered to buy Yahoo for $44 Billion in 2008; substantially more than Verizon is going to pay for the company. Yahoo's board of directors blatently overestimated the company's value in 2008, but then companies are always going to overestimate their worth when they want to sell. It's better than underestimating after all.
They should have sold much sooner than this. Instead they made a string of horrendous decisions that saw the company's value plummet. Mayer should have been gone two years ago, and the company sold then, when it was worth much more. It's questionable if the company can be saved, or if Verizon will even try. They may just break it up and sell its parts.