Yahoo should acquire eBay, according to Valuentum. Yahoo is a troubled company right now, under pressure from Wall Street, and the investment research firm sent an open letter
to Yahoo CEO Marissa Mayer to add its two cents to the pennies piling up.
It's an interesting idea, especially since eBay has had trouble getting exposure in Google search since 2014. The "content" and "community" of Yahoo could also be a good fit for the "commerce" of eBay. Yahoo could drive shoppers to eBay, and eBay could be a platform for Yahoo's ads.
The idea of Yahoo acquiring eBay has been around for over a decade (along with other suggested pairings). In 2005, Sramana Mitra
had suggested a Yahoo-eBay merger when she heard eBay was considering acquiring Skype (a move she correctly predicted would not work).
The idea of a Yahoo-eBay merger came up again over the years, including in this 2007 article from ReadWrite.com
in which it wrote, "eBay and Yahoo have little overlap in their core businesses, but I think they compliment (sic) each other well. eBay is primarly (sic) an ecommerce business, while Yahoo is an advertising business; a combined company would have a very diversified revenue stream." The publication also noted the fact that the two had a strong working relationship.
But a lot has changed since then. eBay no longer owns PayPal, ecommerce is not a priority for Mayer - and Yahoo may have too many problems of its own to handle such a move.
A reader who sent me a link to the letter said, "Perhaps this would lead to the fresh start eBay needs to reinvigorate its marketplace. No doubt, an acquisition by Yahoo would lead to a house cleaning of eBay's stuck in a rut management and provide the fresh management eBay needs to be resuscitated."
Putting aside whether the merger of Yahoo and eBay makes sense from an investment point of view, how do you think such a deal impact eBay from the seller's point of view?
Does a Yahoo acquisition of a post-breakup eBay make sense in 2016? Can you think of a better merger than between Yahoo and eBay?