This would make the second buyout offer for Yahoo within the last three years, and while many may have no opinion on the subject, were Yahoo to sell to AOL, users might flee to better options.
According to the Associated Press, AOL, a weaker competitor of Yahoo, may just be making that attempt. Rumors of a financial slump may be fueling the desire to acquire the Internet giant, and has spiked Yahoo stock value by 13 percent. There may yet be more than meets the eye for prospective investors, though. Will this turn out to be a profitable purchase for AOL?
If memory serves correctly, doesn't AOL suck?
AOL is admittedly seeking a partnership with firms which specialize in buyouts of companies with undervalued stock. Will the reputation held by the company of terrible customer service, â€œgimmickyâ€ marketing, and loading users computers down with ad-ware, be enough to motivate corporate officers of the Big Purple Y to decline such an offer, like they did Microsoft? Microsoft is definitely a better option than this one. Will this type of a buyout serve to drive more users to Google mail. Or even MSN Hotmail? Will the reputation of AOL make this a losing purchase for the company and their financial partners?
Shouldn't Yahoo stand on it's own, and ride the financial troubles out? What do you think?
Stock value isn't always a true indicator of what a company is doing. In the past, companies that are now household names were once struggling. Coca-Cola comes to mind. Warren Buffet can attest to the growth potential of undervalued stocks. Of course, noone can really blame AOL for wanting to acquire Yahoo. But if they do succeed, will Yahoo go downhill, as badly as did America Online?