Yahoo Unveils Growth Plan

On Tuesday, Yahoo! disclosed a three-year plan it maintains will put it in front of forecasts from Wall Street, in an attempt to prove to investors that the takeover offer from Microsoft undervalues the company.

The plan was initially presented to the company’s board in December of 2007, before the $44.6 billion takeover bid from Microsoft and the quick economic decline of the last few months.

Yahoo’s plan sees the company almost doubling operating cash flow from $1.9 billion to $3.7 billion by 2010, and growing revenue, excluding affiliate payments, to $8.8 billion.

Experts say the question is how precise is the plan?

In an editorial blog, ZDNet editor in chief Larry Dignan says the discharge of the information is an attempt by the company to make the case for sustained operation independent of Microsoft, or at least get Microsoft to elevate the price of its offer.

According to the plan, Yahoo! is on target to report revenue of $5.6 billion for 2008.

Yahoo! shares rose more than 4 percent to $27 in premarket trading on the Nasdaq Tuesday.

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