Monday, October 30, 2006

Will Yahoo buy AOL?

The business rumor mill is spinning with the news that Yahoo may be trying to buy AOL. Could it be true?

It could well be, after all Yahoo shares have been as soggy as my kids nappies for most of this year so CEO Semel needs to do something.

And Time Warner need to increasingly focus on creating content and might be better off as a minority owner in a merged Yahoo/AOL business which would instantly become the worlds numero uno portal by a long way.

And hanging over Semel's head is the Microsoft guillotine. If Yahoo does not do something, Microsoft may end up eating them. Which is not a pretty picture.

The easiest option might be for Yahoo to try and remain independent, but it may be too late for that, the big Internet players have reached a point of maturity where consolidation should become the name of the game.

If so, Yahoo would be better off as a leader than follower. Better buccaneer than schmuck(aneer).

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