On September 8th, 2005, I wrote a piece called YahooBay, not SkypeBay, as eBAY prepared to buy Skype. Since then, eBAY has stabilized, their core auction business is doing better, although Skype still remains a relatively unmonetized asset. I hope this changes relatively soon, since I am a shareholder, but I still maintain, it is
Few months back I wrote YahooBay. In the last month, eBAY shares have dropped a great deal. The core auctions business is slowing, and under threat from Google. So far, Paypal continues to grow by 30%+, but if Google launches a payment platform, that business will also go through jitters. The stock will definitely tank
However, I also believe, that to counter Google’s menacing march towards an unchallenged and unhealthy level of market dominance, a viable alliance could be YahooBAY.
I said once before, that Yahoo should acquire eBay. eBay’s market cap is $52 Billion, whereas Yahoo’s is $50 Billion. It would roughly be a merger of equals, but I believe Yahoo’s future is far more promising than eBay’s. Hence, judging by futures, Yahoo ought to acquire eBay.
True, that 157 Million Users need to be further monetized with additional services. But Skype is not the answer. In fact, if I were to put two large scale net properties together, those would be YAHOO & eBAY, making YAHOOBAY a fitting answer to Google’s rising power.