Posts Tagged ‘AOL’

Why I keep bashing Yahoo(YHOO) and AOL(AOL)

By: ispeculatornew | Date posted: 03.03.2010 (5:00 am)

I might be one of the more vocal critics of Yahoo and AOL (and of web conglomerates in general) but to be honest, these companies are not making it easy for those defending them. It seems like almost every week I hear news that is truly stunning (not in a positive way) about these 2 stocks. If would love nothing more than to have someone come here to argue that these companies have a bright future. Both of them used to own the web in some way, and used to be the most influential companies at their prime. But that time seems like decades ago already. Here are a few examples from the past week:

2/24/2010: Yahoo announces a content partnership with Twitter. Remember when Google was blamed for copying Microsoft’s move a few months ago to do just that? Google had answered within 24 hours about its intentions to do the same. Why then did it take Yahoo so much more time? Was everyone asleep? Better late than never? Sure…but why be late if you can actually do it at the same time as competitors?

3/1/2010: Arguable Yahoo’s most valauble property, Flickr had its photo editing partner, Picnik, purchased by Google, which will make it akward for Flickr but will also help Google better compete. Of course today, Yahoo’s CEO announced they would be focusing on small acquisitions. Couldn’t you have thought about buying one of your main partners before competitor Google jumped in?

3/1/2010: AOL announces the sale of Buy.at for $17 millions. What’s bad about it? They actually bought it two years ago for $125 millions. And no, this did not happen during a dot com bubble or anything of the kind. A recession? Yes. But how many assets do you know that lost over 85% of their value? Bravo AOL once more.

3/2/2010: AOL CEO now says that its revenues will be shrinking in Q1, because of a tough environment. Analysts meanwhile say the problem is at AOL and that other web companies will show growth….

3/2/2010: Yahoo CEO Carol Bartz when asked why its compaany was not as “hot” as Facebook: “Remind me what’s their revenue?”. Seriously? You are dissing one of the top 2-3 companies on the internet? Let’s have this revenue discussion in a year or two….

Remember that all of this happened in just a few days… Just a reminder of how bad things are for these two companies. What made my day though was reading an article suggesting that Yahoo should buy AOL. Why not right? Surely things can’t get worse right?

Any thoughts? I would love someone to come defend AOL here.