Looks like AOL is snapping up anything which seem interesting with the goal of becoming world's largest digital media company. I know that Yahoo's ads revenue have been rising for last 4 months vs. AOL, but it still seems odd, that Yahoo is not actively competing to acquire these companies. These kind of acquisitions will drive more traffic to AOL portfolio websites and does not look good for Yahoo in the long run.
Mergers and Acquisitions by themselves are not always successful. There is no bigger example than the AOL and Time Warner merger. But AOL's acquisitions are interesting on multiple front. On one side it is grabbing up these websites and denying Yahoo the opportunity, but it is also creating barriers of entry for new entrants. It is also keeping the buzz around AOL going.
I am not sure, how successfully AOL can integrate these websites, but does it want to integrate? It could just be a portfolio approach for Tim. He probably sees AOL as a holding company for these portals with high potential and might decide to spin them off in future for high valuation. I do not know the answer, but it is just interesting to think about it.
I feel bad for Yahoo, especially since so many of my close friends work at Yahoo. I do hope they can figure out a way to turn around the company or at least bring someone who can.
Mergers and Acquisitions by themselves are not always successful. There is no bigger example than the AOL and Time Warner merger. But AOL's acquisitions are interesting on multiple front. On one side it is grabbing up these websites and denying Yahoo the opportunity, but it is also creating barriers of entry for new entrants. It is also keeping the buzz around AOL going.
I am not sure, how successfully AOL can integrate these websites, but does it want to integrate? It could just be a portfolio approach for Tim. He probably sees AOL as a holding company for these portals with high potential and might decide to spin them off in future for high valuation. I do not know the answer, but it is just interesting to think about it.
I feel bad for Yahoo, especially since so many of my close friends work at Yahoo. I do hope they can figure out a way to turn around the company or at least bring someone who can.
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