Yahoo! and Takeover Bids
There are rumors of a takeover bid of Yahoo! by AOL and some venture funds. Although AOL management may be considering buying some of Yahoo!, it definitely cannot afford to or even want to buy out the whole lot.
Yahoo! is still a company to reckon with and it has a lot of clout of its own, including a very big brand name, which internet users still feel good browsing to. A takeover bid may be in the lines, but it seems to be more for the overseas holdings and different business sections of Yahoo! than for the company itself. Also, a takeover of Yahoo! would be a bad move on the part of any organization right now. The main selling point with Yahoo! is its various properties and the display ads (which overall are not doing too well, with more competition pouring in in the form of Google and Facebook). Also, the deal done with Microsoft for search, although a good revenue earner for Yahoo!, has as yet not completely gone through. There are still a lot of rough areas to be sorted out. All in all, Yahoo! is not a good target for a takeover bid currently. Although many of its properties being sold separately would make a good buy.
Another point to note is that a company's greatest assets are its people, and Yahoo! has been having an exodus of good people. The ones who are left behind (or wish to stay behind) are also good, but they are not known names in their fields (someone like Rasmus, for example). Technology-wise also, Yahoo! is lagging behind in many ways. People in many of its divisions have begun to lag behind - either due to being subject to too much uncertainty or not having enough resources to get the work done. All these issues are plaguing Yahoo! and they might become the bane of the group which does eventually try to make a takeover bid (if possible). And these are issues which cannot be easily addressed, even though "management" may see it otherwise.
Yahoo! does need to revamp itself and not lose track of being a technology company, so as to attract talent that it is losing like sand through a sieve. It has started targeting itself as too much of a media company (maybe due to fears of a takeover or being in competition from takeover). This image does need to change, and I hope it does it fast to save itself from total ignominy.