While investors are focused on Yahoo's disappointing fourth-quarter results - the stock is down 10% so far today - it looks like the company's active M&A program (del.icio.us, Flickr, blo.gs, SearchFox, etc.) will continue. In a research note, Merrill Lynch said Yahoo made it clear its top priority is "building and expanding the suite of tools, services and solutions for Internet marketers and publishers". To me, this suggests Yahoo will use organic development and acquisitions to bolster its service portfolio, which is great news for entrepreneurs and wanna-be entrepreneurs doing Web 2.0 start-ups based on the prospects of being acquired by Yahoo (or Google, eBay, Microsoft, etc.). This focus on M&A continues to be fueled by VCs willing to pour millions of dollars into start-ups with interesting technology/services but little chance of creating a viable, revenue-generating business. Gather.com's $6-million financing is just the latest example of the troubling side of dot-com 2.0.
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Yahoo's M&A Spree Has Legs
by
Mark Evans
on Wed 18 Jan 2006 10:52 AM EST | Permanent Link
While investors are focused on Yahoo's disappointing fourth-quarter results - the stock is down 10% so far today - it looks like the company's active M&A program (del.icio.us, Flickr, blo.gs, SearchFox, etc.) will continue. In a research note, Merrill Lynch said Yahoo made it clear its top priority is "building and expanding the suite of tools, services and solutions for Internet marketers and publishers". To me, this suggests Yahoo will use organic development and acquisitions to bolster its service portfolio, which is great news for entrepreneurs and wanna-be entrepreneurs doing Web 2.0 start-ups based on the prospects of being acquired by Yahoo (or Google, eBay, Microsoft, etc.). This focus on M&A continues to be fueled by VCs willing to pour millions of dollars into start-ups with interesting technology/services but little chance of creating a viable, revenue-generating business. Gather.com's $6-million financing is just the latest example of the troubling side of dot-com 2.0.Comments
Re: Yahoo's M&A Spree Has Legs
by
Mack D. Male
on Wed 18 Jan 2006 09:58 PM EST | Profile | Permanent Link
This is kind of what I said at Henry Blodget's site...their focus has shifted to acquisitions, which I don't think is a bad thing. At least Yahoo is making an effort to bolster it's offerings with meaningful purchases. I'd rather have Yahoo purchase del.icio.us than Google release another beta product any day.
Of course, it remains to be seen if their acquisitions will pay off. Trackbacks
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