$1 Billion is 3% of YHOO market cap, quite a lot considering it has slid 6.5% since the YSM disaster started at the weekend.
Maybe they are getting cold feet, if they can't fix problems with their flagship product how will they integrate Facebook?
For me its a bit difficult to see ANY website no matter how popular being worth 1Billion plus. Sites come and sites go, communities grow fickle or grow up. I can easily see that one year from today, the thrill of the Youtube's and Google video's, generating perhaps 25% of todays traffic.
And lets look at Microsoft for a moment, with Soapbox they have (well not quite yet) entered the market, on a budget. They already have some content thanks to MSNBC etc.. so they can take the billion and, oh no, spend it on marketing and/or aquiring more content. They have done an pretty fair job IMHO with the technology, but the option to download a clip/video is sadly missing.
I have used Youtube as well as Google Video, and downloaded many a webcast from Google Video, but how long will the content remain free? What about higher resolution? What about monthly sitcoms? What about a news network from the people by the people for the people? There is room for growth, but if the wrong people get involved (record companies, telcos etc), and by that I mean primarily lawsuits, then free, well free will probably die a slow death along with the sites popularity.
yey...Y! to spend more $$ just to say "me too." They had a great opp. to expand with delicio, flickr etc.
Can anyone mention something that Google and Yahoo! both do, that they think Yahoo! really does a better job of?
Let's home Y! is smart enough NOT to jump on that me too bandwagon.
Yahoo consistently disappointed me as a customer.
If they buy Facebook, they'll probably make it less desirable. If they don't buy it, someone else will buy it, probably make it better and beat Yahoo over the head with the success. If I was Yahoo, I would just buy it and ruin it as planned, the lesser of two evils.
I smell another Internet bubble .......