Cuban’s Yahoo Fix: Buying Spree (YHOO)


The new conventional wisdom in tech circles is that the recession offers a golden opportunity for cash-rich big companies to acquire startups and clobbered companies cheap. That’s what Chris DeWolfe thinks about MySpace (NWS). It’s also what Barry Diller has in store for IAC (IACI).

Now Mark Cuban lays out a similar plan for Yahoo (YHOO): Buy, buy, buy.

First off, Mark argues, Microsoft (MSFT) has no real interest in Yahoo. And shareholders are so shellshocked that the only Yahoo future they can conceive up is one in which it is chopped up and sold in parts.

Mark says the company should be taking exactly the opposite approach:

Yahoo should be the most aggressive acquirer on the planet right now.  In case you haven’t noticed, everything and anything owned by private equity firms in the media and  technology spaces are on sale at a huge discount…

Google (GOOG) has a profound ability of not having any idea how to monetise content.  Google does one thing well, search.  Yahoo is and should be the best at everything else.

There is something to this, although given Yahoo’s demolished stock, the acquisitions will have to be made for cash. And not just any huge deal will do.  The company’s $5.7 billion deal for Mark’s wasn’t the best acquisition in history.

See Also:
Did Mark Cuban Commit Insider Trading?
The Simpsons’ Mr. Burns: What Would Mark Cuban Do?
MySpace CEO: Acquisition Targets Dirt Cheap And Getting Cheaper
IAC Hoarding Cash, Thinking About Acquisitions