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Why Yahoo is a Bad Deal at Any Price

As I watch the sideshow that is the sale of Yahoo, I have one piece of advice for the bidders that sent offers to the Yahoo board this week: Back out.

There are three reasons to buy a company, at any price. The first is that you basically have an easy way to make more than you paid, including the opportunity cost of the capital and the effort expended. The second is that it has some growth that is valuable to your current business. And the third is that there are strategic synergies that make the acquirer’s business more valuable.