Top Yahoo Investor: Microsoft Will Try Again in ’09

Is three times the charm? eWEEK reports that Eric Jackson, president of Ironfire Capitol, a large Yahoo investor with over 3.2 million shares, believes that the company is in trouble, despite what they may have said in Friday’s shareholder meeting.

“The company needs to make some fundamental changes if it’s going to improve its performance and stock price. Yahoo is too bloated right now; they need to reduce head count, focus on core businesses and divest some of their holdings that aren’t making any money,” Jackson said in the article. “But it’s only about the second inning [of the company comeback], although it’s been the second inning for a long time. There have been a lot of pitches and foul balls.”

Jackson thinks—and he’s certainly not alone in this—that Microsoft will try again next year, just as they had also tried in 2007 and failed. “I believe it is simply due to Microsoft’s weakness in its Online Services Division. You look at their last quarter’s numbers for that group, and it’s clear that they are falling further behind. Their desktop business also showed deceleration. Yahoo helps with both problems,” he said.

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