It was more than 4 months ago when Microsoft’s plan of acquiring Yahoo! became public. At the time, my prediction was that Yahoo! was going to be acquired, even though I personally didn’t like that outcome.
Well, after months of much tribulation, it looks like Yahoo! will remain independent after all. Both companies reported this week that any merger talks are now over.
Somewhat similar to Apple in the late 90’s, Yahoo! now finds itself in a tough spot. It’s hemorrhaging talent and handing a lot of its search ad inventory to Google, its main rival not too long ago. Many shareholder constituencies are suing the company and plenty of analysts believe the company is doomed.
Despite the bleak outlook, I still think Yahoo! will get back on its feet. But not before a major shake-up in its ranks and a new, strong and visionary leader comes in.
It’s way too early to declare Yahoo! a loser. It took a major fall, but if it comes back and becomes, say the top provider for location-based services, it’s back in the game.
Yahoo! is a very powerful online brand and a bazillion people visit the site every day. It won’t be a threat to Google for a long time, if ever, but it can still be a very progressive and successful new media company. In fact, Yahoo! has always positioned itself more as a media company anyway under the direction of its previous CEO.
Some agree that Yahoo! will regain its footing. Others disagree.