Verizon has bought Yahoo for $4.8B in order to grab additional eyeballs for the telephone companies internet/wireless properties.
This deal has plenty of similarities with the infamous Time Inc/AOL purchase just before the Internet Bubble burst in 2000.
Ironically, AOL is in this deal since Verizon bought a shell of the service last year. Tim Armstrong, who leads AOL now, is a veteran of the last bubble, riding it out at Google.
While both Yahoo and AOL have advertising technology that could meld together and Verizon has the wireless patents, putting this all together under one tent is always the biggest problem in these mega-media mergers. Egos often cripple integration of these firms. And the fact that Marissa Mayer — Yahoo CEO — says she is staying points to this problem.
Mayer has had a lousy run at Yahoo, with so many missteps that large Yahoo shareholders pushed her into this deal to get rid of her. So we’ll have to see how long she stays around.
My thought is she will announce before years’ end that she wishes to spend more time with her family and takes a lucrative exit package.
So could this mark the top of this market, perhaps? Let’s put some markers here and come back in a while.
Nasdaq: 5,100. Not as high as the Internet bubble level, but pretty close.
Dow Jones: 18,570. Just below its all-time high.