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May 28 2009

Yahoo and its Tale of confusion: To Sell or not to Sell and what to buy?

Sardar Mohkim Khan 

image thumb89 Yahoo and its Tale of confusion: To Sell or not to Sell and what to buy?

More often every news associated to Yahoo sounds more like a tale of a kingdom in the ancient past that has lost its position of glory and continues its struggle to rise up again. Yahoo is doing exactly that or at least trying to sound focused at winning back what it has lost. Carol Bartz, Yahoo’s current CEO did the same yesterday, stating that she is open to initiate (a billionth time in less than a year) the talks of a search deal with Microsoft. What’s her condition? Only if Microsoft or any other interested party is ready to pay a sky high amount in cash. I will rather take the term Boatload of money as she stated as it defines what was actually running in her mind. I appreciate her determination; which is to pull Yahoo out of fire that continues to melt away its execs and putting a halt to many of its entities.

Both Microsoft and Yahoo have what each needs. Microsoft has got all the cash Yahoo needs and Yahoo has the data which Microsoft badly needs to make a break through of some sort with its desperate moves to compete Google in Search. But chances of a home run over a full buyout are still slim (I am avoiding being pessimistic here).

Other than this, Bartz also talked about making acquisitions in the social and video tech category. Wait a minute, what exactly is Yahoo going to acquire? The big names in business won’t sell themselves to Yahoo primarily because that would require boatloads of cash as well, which I assume Yahoo is short of. What I personally think that Yahoo should do is concentrate more on its existing entities, Search in particular that still ranks as a distant second to Google and Microsoft, deep down inside needs it. The other thing it needs to do is try and keep its existing execs glued instead of falling off its branches with years of experience.

The biggest reason why Yahoo keeps climbing down the ladder is there is some division within its ranks. And it sounds quite obvious in my opinion. I mean what else could make one of the most known names on the web fall exponentially?

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