15
Feb
08

Does someone actually NEED to buy Yahoo?

Since the tech community is currently buzzing with speculation about acquisition talks with Yahoo, i was thinking…does Yahoo actually need to get acquired?  Del.icio.us,Flickr,Upcoming: all web 2.0 properties that Yahoo owns, yahoo is also well liked due to its open source mentality.  Yahoo could do very well merely by consolidating into a conglomerate of web 2.0 companies that individually, some make a profit, and some don’t, but together form a profitable enterprise.  Flickr for example, a great loss leader, it brings brand awareness but has huge bandwidth costs, but combine that with Yahoo’s other services, and you could, with a lot of tweaking, have a lean, nimble web 2.0 conglomerate.  Imagine it, The main yahoo can concentrate on what it does best: Mail, Calendar and Business info, and attached to the sides can be all the amazing web services Yahoo has managed to pick up.  Under this scenario, Yahoo might even turn into “Venture Capital without the Venture Capital”. By that i mean, a single company that purchases start-ups, is profitable as a whole, but can afford to wait to let companies truly blossom, unlike traditional VC, and since Yahoo! has already been on the Stock Market for years, people could invest in this new company easily, allowing investors to buy a single share in what is over-all a profitable enterprise, but the combined share approach also prevents Wall Street’s “Get Bent” attitude towards individual companies penetrating deep into yahoo and killing its loss leaders.  Yahoo could even sell their search portion to google on a subscription basis, eg. Google pays $$$$ per year to “own” yahoo search, and with a constant flow of google cash pumping into Yahoo, yahoo can continue to fund its acquisitions and become a great company.  Sound’s good to me….

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1 Response to “Does someone actually NEED to buy Yahoo?”


  1. February 15, 2008 at 1:01 pm

    I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.

    Allen Taylor


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