There comes a time in a company's lifetime when insurmountable competitive forces and unfavorable industry dynamics draws the business model into the decline phase. Yahoo! has approached that moment.
In our last write-up on Yahoo! seen here, we outlined several steps management and the board should take to increase shareholder value culminating into the inevitable final step - a sale.
At the time we mentioned Microsoft or traditional media conglomerate companies but now we think a foreign company makes sense, with Baidu being the most logical acquirer.
Baidu has bigger aspirations than just China. If it wants to challenge Google then buying Yahoo! makes sense.
Thursday, June 23, 2011
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