Yahoo Acquisitions: A Hunch about Why

May 8, 2014

I read “Yahoo Spent More Than Anyone on Acquisitions in 2013, but Why?” At dinner tonight several colleagues and I discussed Yahoo’s buying spree. The article surmises:

There has to be rhyme and reason for Yahoo to have picked up these companies, even if it was just to keep talent from the likes of Google or Facebook. In the continued push for Yahoo to be more mobile and contextual, we should look forward to a Yahoo stacked with both talent and money in 2014.

That’s a positive view. The thoughts of the ArnoldIT conversation drifted a different direction; for example:

  • Yahoo is taking advantage of the “bet on a bunch of horses.” The notion is that one or more will be winners
  • Yahoo is just doing stuff to demonstrate that it has direction, intent, and purpose. In short, the deals are Wall Street theatre, just way off Broadway
  • The Silicon bubble is a habitat that encourages gorging.

Financial results may shine a light on the actions.

Stephen E Arnold, May 8, 2014

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