Skip to main content

Yahoo and Google- get it over with!

I have written once before on how Yahoo was making some good moves in terms of phasing out unprofitable lines of business and increasing focus on core business functions.

Yesterday it was announced that Yahoo CEO Terry Semel had resigned and would be replaced with Yahoo founder Jerry Yang. Investors initially cheered this news but then concluded that Jerry Yang did not represent enough of a change. The stock ended today down 1.7%.

The bloggers and analysts are now speculating on potential directions for Yahoo. Mergers with or acquisitions by Time Warner, Microsoft and the other usual suspects have been mentioned.

My opinion is that Google should spend some of their billions and acquire Yahoo. The two companies are completely complementary. Google offers the dominant search and online advertising platforms on the web. Who needs Yahoo's Panama when you can sign up with Google?

Google realizes they need to augment their presence with more content; hence, the purchase of YouTube. Yahoo has tons of content. They are the most visited site on the web. Their financial, email, news, shopping, Flickr photosharing site and other features are far more popular than similar features offered by Google.

Why should these two companies compete head to head when a combination would create an Internet powerhouse? Come on, Google! Buy Yahoo and get it over with.
Labels:

Comments

mdmcginn said…
Maybe more people visit Yahoo than any other site. But that doesn't mean that everybody visits Yahoo. Visits there make up only a tiny fraction of all visits to websites, after all. It has lots of goodies, but until it has better search capabilities, I will continue to avoid it - mostly because it's cluttered with goodies. As a Standard & Poor's analyst put it, Yahoo has had stability. But stability is not enough.

-- Michael from the U.S. Desk at TheNewsRoom.com
June 20, 2007 at 1:33:00 AM EDT
TradeRadarOperator said…
Michael, I agree that Yahoo's search capabilities don't measure up to Google's. That's one of the reasons I believe a combination of the two companies would be compelling.
June 20, 2007 at 10:10:00 PM EDT

Post a Comment

Popular posts from this blog

Time to be conservative with your 401K

Most of the posts I and other financial bloggers write are typically focused on individual stocks or ETFs and managing active portfolios. For those folks who are more conservative investors, those whose main investment vehicle is a 401K, for example, the techniques for portfolio management might be a little different. The news of stock markets falling and pundits predicting recession is disconcerting to professional investors as well as to those of us who are watching our balances in an IRA or 401K sag. What approach should the average 401K investor take? Let's assume that the investor is contributing on a regular basis to one of these retirement accounts. There are two questions that the investor needs to ask: 1. Should I stop putting the regular contribution into stocks? My feeling is that investors making regular contributions are being handed a present by the markets. Every week the market goes down, these investors are lowering their average cost. When markets reco...
7 comments
Read more

The Trouble with Trend Reversal Indicators

Many of us use various trend reversal indicators to time our trades. Our desire is to determine when prices have changed direction so that we can ride the new trend. Why doesn't it always work out? The first reason, of course, is that unforeseen events often drive prices in unexpected directions. That is something we can't change and it often makes all of us technical traders crazy. On the other hand, sometimes an unforeseen event is a prelude to a new trend. A stock spikes up on a what seems to be a one-time piece of good fortune and soon falls back. Does it start making its way back up or does it resume a previous down trend? The conflict within trend reversal indicators is that, though they can definitely tell when prices change direction, they suffer from two problems. One, they often can't determine how significant that move in prices actually will be. Two, they are often lagging indicators. As such, they can be late in providing a signal, sometimes leading the investo...
1 comment
Read more

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation ...
4 comments
Read more