Umair Haque / Bubblegeneration
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Tuesday, May 08, 2007

Industry Note: Who Should Buy Yahoo?


Analysts aren't strategists. And it's a good thing, too.

Here's a JPMorgan analyst floating a Google/Yahoo combo.

Synergies!! Scale!! etc...

In a spreadsheet, this looks like Keira Knightley in bikini.

From a strategic pov, it's more like Dick Cheney in a bikini.

The point is that Google and Yahoo have vastly different DNA. It would be (to mix metaphors) like Carl Lewis genetically absorbing the post Super Size Me Morgan Spurlock - a disaster (for both parties).

With ideas like this, it's no surprise the vast majority of mergers destroy value in the long-run.

Strategy isn't spreadsheets.

Back to the larger question for a sec.

Yahoo isn't a company in dire straits (yet). But it's more and more transparent what we've been predicting for a long time - the leadership is utterly bereft of vision and strategic imagination.

So who should buy Yahoo? What do you think? For my money, it's no one...yet :)

-- umair // 11:55 AM // 0 comments


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