Yahoo should have taken Microsoft's offer

So Yahoo's Stock price is $12.36, and it's prospects don't look good.

Things were going well for Yahoo in Asia, but a recent massive security breach at Yahoo's Japanese auction site caused even it's patrons to turn away in droves.

Some say that Yahoo will be okay in the long term: It's brand is strong, and internet advertising is a growing market. However, I don't think it can continue in it's current state.

Yahoo's CEO, Jerry Yang wanted $37 per share when Steve Balmer came after yahoo in early 2008. At the time, Balmer was worried Yang would initiate a poison pill to make the takeover as difficult as possible, and the takeover fell apart after Microsoft offered $31 per share.

I think it's pretty clear they should have taken it when they had a chance. Microsoft will come back to the table, but I can't see them offering anything near that much this time.

All that being said, it may be a good time to buy Yahoo stock. Carl Ichan and the other activist investors want Yang's sacked, and they may have a chance at succeeding now that the stock is in the weeds and Ichan had a spot on the board.

UPDATE

Bob Cringely thinks Yahoo should buy Microsoft