Verizon acquires Yahoo for 4.8 Billion

I sort of had a feeling that Marissa was not qualified to revive yahoo but instead dress it up for exit, which is what it seems she has spent many years doing as what I would refer too as the shareholders proxy.

Lest we forget that Yahoo in the late 90s before Google came along was setting the standard of what was then considered early stage social networking, search advertising and web based content media. How such a brand could lose its way after being pinned by its competition such as Google over the years is a clear example of internal innovations within the company being stifled.

More than its business model Yahoo has probably messed up its internal culture. It was not surprising to hear that board whilst keen to let go of Yahoo as a brand, have determined that Alibaba one of Yahoos assets was worth holding onto.

Alibaba rivals ebay and is a huge and growing web based market place that trades with the world and it has been largely concentrated in China with their ability to move large volumes of product globally through their manufacturing strengths.

Whilst as an old man I could ramble about Yahoos flaws til the cows come home, I will choose not too instead referring this article back to the 'internet of all things' and putting out a probing question which is: 'is our traditional internet now simply being monopolized to the extent that control of meta information has now become data of the privileged few businesses'.

Whilst acquisition hype tends to benefit the entrepreneurs looking to make a quick buck in tech, what it does not do is encourage competitive innovation because as smaller innovative developers, their firms, app builders etc get swallowed up by the likes of Google, Facebook, Apple or Microsoft they also inherit the weaknesses of the larger organizations.

Those weaknesses are that 90% of all ideas being innovated within these big tech companies are often shelved and gather dust never to see the light of day or even be commercially tested. The sad reality of innovation.

It is not just isolated to the tech industry that companies get consumed by bigger ones, it has been in every industry for quite some time but the thing that the tech world has to be very careful of now is that this type of economic culture is not by any means a good thing, because as bigger companies grow and smaller ones disappear off the map, it starts to lead to a poorer economic climate with less incentive on job creation, innovation and entrepreneurship.

The mentality of TOO BIG TO FAIL, needs to be quickly removed and the only way in which to keep larger corporations honest with their capabilities is to introduce new small businesses who can create something that may seek to disrupt the all powerful business models held by the big giants.

I am completely lost. why does verizon even care about alibaba or yahoo.

Who what when where and why does verzion want to incorporate either of these companies into their business models.

It might just be because I am tired, but this really sounds as foreign as pepsi buying ferarri.

Well the shareholders of Yahoo decided to actually keep their 15% equity in Alibaba but they are letting go of Yahoo as a brand and asset.

Marissa seems to think that the future of Yahoo is in Mobile apps and that because of this they can serve Verizon and its interests in the app market, I think however that is a bit of a weak argument for a CEO who was clearly failing in her job to try and spark life into Yahoo.

So to provide clarity, Alibaba is not for sale, Yahoo its parent company and shareholder however has been sold to Verizon.

That makes even less sense.

Unless Verizon is trying to play some sort of cheesy 80s wall street move, then I really dont get it.

Ultimately the question I have is what is there to buy to begin with.

The yahoo brand is cancerous. Their software is what made their brand cancerous to begin with so I doubt they want that either. That leaves some data centers, and some land.

Unless the data centers that yahoo has are special in some way, then I seriously doubt they are worth 4 billion bucks.

I feel like verizon just bought a smelly turd and paid for it with a giant sack of gold. Unless there are rough cut diamonds rolled up in that smelly turd, then I have no idea why verizon would do this.

no its still a turd!

Oh Yahoo...

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Yeah its a surprise Yahoo made it that far XD