According to management Yahoo! is keeping its eyes open to buy some companies... But which ones would you think are an almost 'perfect fit' for yahoo?I still think Yahoo! should take over an ISP like Earthlink. When people pay Yahoo! to access the net, they've got an instant 'credit card relationship' with Yahoo!, probably making it easier for people to pay Yahoo! for other premium services too.The other one I have in mind I just read about. The online credit card provider Nextcard... They're looking for a buyer. Nextcard has over 1 million members and has been named best online credit card 4 years in a row. Yahoo! couldn't possibly get a closer 'credit card relationship' than that can they? ;) I would imagine a company like Nextcard wouldn't be such a huge investment as taking over an ISP too...Anyway these are my thoughts, does anyone have any other possible companies in mind?
Hey, Evetommy,Here's a message where I proposed a VRSN / YHOO merger (and I still like the idea). http://boards.fool.com/Message.asp?mid=15451769Also, PALM is really cheap nowadays...although I'm not too familiar with how the PalmOS is doing...would be nice if YHOO controlled handheld devices.--steve-o
PALM is really cheap, but I'd be highly suprised if yahoo dared to buy it. It hasn't got much to do with their core business... It's probably something for Microsoft. They've got the money to buy it and to -not- get it right from the first time... ;)I don't know much about VRSN, but at first glance Yahoo & VRSN could be a good match on several fronts. The only problem i can see is their market valuation? Seems a bit much for Yahoo! Verisign seems like a good business though, a shame Yahoo! didn't do some bigger acquisitions when their stock was valued as high as 250$...Still think Earthlink seems like an attractive buy for YHOO... And Nextcard too after yesterdays plunge...VRSN VERISIGNLast Trade Oct 31 · 38.7152-week Range 26.2500 - 146.4375Mkt Cap 7.856BELNK EARTHLINKLast Trade Oct 31 · 14.6552-week Range 4.7500 - 18.9200Mkt Cap 1.925BNXCD NEXTCARDLast Trade Oct 31 · 0.8752-week Range 0.8400 - 12.7500Mkt Cap 46.4MYHOOLast TradeOct 31 · 10.8852-week Range8.0200 - 70.6250Mkt Cap 6.233B
Buying (or even merging with) PALM wouldn't make any sense. Yahoo is a media and services company. Palm is a hardware and software company. Hardware is traditionally a low margin business. In the software space (i.e. Palm OS), Palm is going head to head with MSFT - not good. I doubt Yahoo management would know how to run Palm; it's a completely different business. Furthermore, Yahoo is not gaining much traction with the mobile services it already has, as far as I can tell, so I don't think there is a compelling reason for Yahoo to own the platform too.Now buying Earthlink, however, makes perfect sense - assuming the numbers could work out. I'd wager that a majority of Earthlink users are also Yahoo users; I doubt that these customers would spend much time in MSN's or AOL's properties. Earthlink has their own portal and services but they're 2nd rate compared to Yahoo.If I were running the company, I'd buy Earthlink for their customer base (how many million is it now?) and network infrastructure. I'd throw out their client software and direct users to Yahoo services using Yahoo Essentials. Then I would undercut MSN's & AOL's price for a couple of quarters to try to increase the customer base. And I'd start an advertising blitz with lots of free CD's (works for AOL!). It costs money buy Yahoo has the cash.Lastly, I'd also make premium services packages by grouping like items (e.g. a consumer finance services package would include real-time quotes, bill pay, investment reports, on-line taxes, etc., a home business package would include auctions, classifieds, store, etc.). I don't like the piece meal stuff. Think of cable TV - people will pay $50 for 100 channels; if you charged $0.50 per channel, they probably wouldn't buy all 100 so you make less money. Make these free or drastically discounted for Yahoo ISP subscribers to encourage people to join.
I agree buying PALM would not be a great idea for YHOO, as I've said before I think Microsoft would have a possibility to take over PALM but even so...On eartlink I also agree for a 100%, I hope they're at least seriously considering it or maybe some crumbles from the bankrupt @Home??And again, Yahoo! should seriously start bundling their services, but I expect them to do so soon as there have been a few user surveys asking Yahoo! visitors their opinion about that.But I've come up with another take over target for Yahoo!. What about the internet browser company OPERA ? They've got a few millions of users and apparently are profitable too.MSN shutting down its websites last week (and having to reopen them due to public outcry) shows they're quite easily scared by high quality products and OPERA certainly is the best browser out there. Yahoo! would conquer a few million loyal Opera users. They could redirect them to their services... and as you might have guessed some Opera users are quite anti-Microsoft and would be very loyal to Opera and possibly also support Yahoo! fiercely. I would also suspect that this privately held company wouldn't cost Yahoo! that much either. Yahoo! would gain a few high profile talented programmers they could use for other Y! services too...Take over targets we've discussed so far are: EARTHLINK, VERISIGN, NEXTCARD & OPERA. And we gave the thumbs down for a possible PALM combination. Other suggestions or views on possible take over targets?
Hmm...i wonder if Yahoo is the takeover target not the other way around, especially if their stock falls to $6-$7 range.
Correct me if I'm wrong but hasn't Yahoo! got a stake in VVTV, 5% if my memory serves me right...Wouldn't VVTV be a good take over target for Yahoo!? That way they get a 'traditional' channel to plug their e-commerce services. A shopping channel would certainly be a HUGE benefit on other competitors like e-bay, Amazon & MSN. VVTV that runs ShopNBC already has a program called``The Yahoo! Shopping Hour' and is represented on Yahoo! shopping.It's a profitable company and I think it would make Yahoo!'s shopping & auction platform an even more unique shopping destination with an attractive off line component to reach the off line shoppers.VALUEVIS CL A (NasdaqNM:VVTV)Last Trade Nov 5· 14.2152-week Range 10.6875 - 26.0300Mkt Cap 551.1MYAHOO INC (NasdaqNM:YHOO)Last Trade Nov 5 · 11.7152-week Range 8.0200 - 70.6250Mkt Cap 6.708BOpinions welcome! Other take over targets we've discussed so far are:Earthlink, NextCard, Verisign, Opera & parts of Excite@Home.
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