Just a quick follow on a post yesterday that looked at the next big deal in the VOIP space. By stepping back and taking a look at the Web landscape, does it seem that unreasonable for a Google or a Yahoo to go after eBay, or a Microsoft to acquire Google or  IAC/InterActive Corp.? Yes, these would be mega-billion dollar deals - a Google-eBay merger, for example, would be worth at least $140 billion. But they're not unrealistic given we're at the cusp of Web 2.0 of the New New Web where lucrative business models such as pay-per-click have emerged and it has become obvious there are tremendous profits to be made from offering Web-based services and content to consumers around the world. Perhaps this is the opportunity to establish a huge foothold in Web 2.0. Look at Google: for all of its dominance of the search market, it's still a one-trick pony. There's little doubt it can ride this pony for a long, long time but what happens when the growth of the pay-per-click markets starts to slow - much like eBay has apparently realized the prospects for its flagship auction business are not as bright. With an $80-billion market cap and $6-billion in cash if its secondary offering is completed, Google has the financial muscle to do pretty much anything it wants. You can bet there are few investment bankers running around trying to sell this vision. Stay tuned!
Update: According to Bloomberg News, Merrill Lynch analyst Luaren Rich Fine believes Google could acquire AOL.