Yahoo-Broadcast.com Article Excerpt From Investor's Business Daily
Yahoo Broadcasts Its Intent to Focus on Business Users
Investor's Business Daily
Monday, April 5, 1999
The deal likely means that Yahoo's rivals are scouring the market for similar acquisitions.
"As somebody achieves some kind of differentiation, it always sets off a mad scramble to do the same thing," said Bill Bass, an analyst for Forester Research Inc., a Cambridge, Mass. based market researcher.
Two months ago, for example, Yahoo said it would buy GeoCities Inc. for about $4.6 billion in stock. GeoCities is a developer of Web sites grouped into communities.
That was Yahoo's response to similar acquisitions that already had been made by rivals Lycos Inc. and Infoseek Corp.
This time, Yahoo has made the first move.
"It's definitely raising the bar in terms of what other portals need to do to move forward," said Jupiter's Keane.
But analysts say few Broadcast.coms are available.
One such firm is RealNetworks Inc., a Seattle based company that makes software to receive audio and broadcasts.
Other acquisition targets could include Intervu Inc. and a start-up being launched by CMGI Inc., a company that invests in Internet firms. In February, CNGI brought in Neil Braun, the former president of NBC Television Network, to head that effort.
Yahoo's rivals should jump on the video bandwagon soon, says Forrester's Bass.
"They have to," Bass said. "If you can't go to (portal Web Site) Excite to see Victoria's Secret fashion show on the Web, then you'll go to Yahoo." |
