What is Yahoo to do
I ask a lot of people a single question, What is wrong with Yahoo's Business? Lots of people can only muster one answer, "They are not Google." I do not get any answers that have to do with they way their business is run or how they use their properties.
Mark Cuban has a good idea of what Yahoo Should do now. He thinks that they should go on a buying streak.
Yahoo has a very simple business. Generate traffic and monetize it. It generates traffic through services and content. It sells advertising around them both. Their strategy should be to acquire every and any company that makes their traffic, services, content or monetization stronger.
Yahoo should be the most aggressive acquirer on the planet right now. In case you haven’t noticed, everything and anything owned by private equity firms in the media and technology spaces are on sale at a huge discount. VC’s are freaking out that their companies not only have no exit strategies, but might also have to close down. No PE or VC in the world wants to make a capital call. Which has created an amazing opportunity. The same on the public company front. Any company that has any level of dependency on advertising has seen their stock tank. The opportunities for a company with a strong balance sheet won’t ever be any better than they are today.
Yahoo should be on the warpath, vetting each and every media (yes media) and technology company it can sit down with looking for bargains.
I am worried that Yahoo is too scared to do something like this. I am worried that people in the tech world would not understand this strategy and they would scare off people that Yahoo could buy. I just hope I am wrong.