Unbelievable But True: There are Reasons Facebook Should Buy Yahoo!


Bangalore: Yahoo!, more than the name it has become an ironic expression for the company, considering a string of management follies including the firing of the CEO last year. With very near to hit the bottom, Yahoo had even considered to sell itself to the right bidder as reported by Wall Street Journal.

Facebook, more in talks lately for its IPO than a successful social platform, has failed to impress the investors. They believe that $ 100 million is an absurd valuation for an 8 year old company who has made only $ 1 billion dollar in profit last year.  Valued currently at about $ 80 billion and having acquired Instagram, Facebook can use its huge amount of cash and stock to buy Yahoo. Though it is hard to imagine Zuckerberg making this move, business Insider cites possibilities that can motivate him to think about this:

6. Yahoo! To cost less

Yahoo still has valuable potential in it but it is predicted to cost very cheap after completely losing its direction and purpose. Failing miserably in its vision to become the first page people see when they open a browser, Yahoo’s valuation is estimated to fall below $10 billion in a few months. Facebook, which is most responsible for this fall is in the best position to acquire Yahoo.