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Technology Stocks : Altaba Inc. (formerly Yahoo)
AABA 19.630.0%Nov 6 4:00 PM EST
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To: Mark Fowler who wrote (8472)3/16/1998 7:24:00 PM
From: Michael Collings  Read Replies (2) of 27307
 
On another topic, in the news release today about the MCI/ Yahoo deal, it clearly states that MCI will receive all the ISP revenues and that Yahoo will receive "most" of the ad revenues. Could someone tell me why Yahoo would make a deal like this? It seems to me this is just one more time where Yahoo is making a very large investment to provide content for MCI in hopes of someday making some money on selling advertising. But in this case, they even have to hand MCI some of those revenues. Doesn't there come a time when you need to stop making huge investments and start trying to get a return on the investment you already have?

What am I missing here? They just spent 100 million on a company that was losing money even though their own revenues for the year were only 67 million. Yeah, I can see that you have to make the investment before you can start profiting from it, but how long? And how many more big investments can you keep making before you have to start focusing on making some money. This is the part that always blows me away with all these search engines. Keep offering expensive free services and someday the money will come pouring in.
When is someday?
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