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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Dave Mansfield who wrote (15709)	12/1/1998 1:23:00 AM
From: HG	Read Replies (1) \| Respond to of 27307

Merger/alliances become important as a market trend. YHOO as a stand alone is enough - until the competition begins to consolidate/integrate. yes, I've been told that 20b is a steep price to pay - and I do think so as well. In my earlier posts I've indicated as much. But if the industry consolidates, as it will, YHOO will need to do so as well. Remember the bank merger mania, the C&L/PW merger mania etc. Its pure business strategy. Does YHOO posses its current value based on this buyout speculation - absolutely not. It just stands alone as a leader. Its revenue from advertising is justified. Remember it provides services - which are expanding. YHOO revenue is not simply because of the banners you see - there are YHOO auctions (OnSale), there are YHOO stores, Credit Cards etc. Not only do they provide a source of revenue, they provide sites for traditional forms of advertisements as well. There was a post a few days back which talked about commissions on airline tickets etc. The maths involved is simple. If other portals have potential even though they are losing money, YHOO has infinitely more potential due to its real earning today. If the internet sector as a whole should tank...well then, thats another matter. At some point we would have to write YHOO off as well. But then, we'd have to write CSCO, LU etc and to some extent INTC, DELL, CPQ off as well. If a company can be created for $100 million or less, ask yourself a simple question - WHY isn't it created today ? Why isn't any company even remotely competing against YHOO ? AOL has just taken a step in the direction, but at what cost ? Definitely not with 100m. Look at msn. How long have they been trying to get their act together ? How much have they invested ? And even with the MSFT clout, what have they done ? Did you know that Rolls Royce does not make any cars any more ? Yet, how much does a "Rolls" sell for ? Why the premium if they are not manufactured by RR ? Its called brand power !