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Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

nytimes.com

81–90 of 135 posts

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#81
post #2

Doesn't Buffet famously stay away from Tech? What changed? He is buying Yahoo and has invested in Apple.

Apple has a P/E ratio of 9.82. (2015 actual). That's what a mature, profitable company looks like. AAPL isn't overvalued. That's the sort of thing Buffet buys. IBM is at 9.90.

Compare P/E (last full year numbers):

    Google:      31.12
    Facebook:    80.41   
    Salesforce: 948.63
    Twitter:    (loss)
    LinkedIn    (loss)

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#82
post #63
post #52

Looking forward to a redesign of Yahoo! to match Berkshire Hathaway's website: http://www.berkshirehathaway.com/

I love that they have an ad for Geico on their site. Edit: Apparently GEICO is wholly owned by BH

Yup it's Buffet's favorite company in his portfolio.

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#83
post #45

Earlier quoted context omitted.

As a consumer, it might make sense to say this. From a business perspective (he says having no business experience or expertise), Yahoo is a collection of assets: Code, people, branding, community. They aren't in first place, and they aren't profitable at the moment, but I think the case that they have zero or negative value is a bit simplistic. Put it another way: Would you rather throw a pile of money at trying to…

Big misconception: Yahoo is profitable, it's just not growing.

Why does it need to grow? Maybe growth is limited, and when it's not, it's dangerous.

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#84

Earlier quoted context omitted.

Were I to take on Yahoo, I'd turn it into a content powerhouse, with supporting tools. Yahoo! Finance should have the best articles -- very technical yet explanatory -- all supported by their stock tools. A billion ways to monetize that. I would use Yahoo! Sports to seriously go after ESPN, which is turning into a turdpile of garbage that's worse than TMZ. I'd literally troll them and get some extremely technical con…

It would cost billions of dollars to even attempt to go after ESPN. The primary value ESPN offers today is ownership of broadcast rights. Yahoo can't afford to outbid Disney on those rights and shareholders would never support risking that much capital on such. What you're describing would never make money. Aggregator sites are among the worst things you could ever attempt if your goal is to make money, which is why…

> It would cost billions of dollars to even attempt to go after ESPN. The primary value ESPN offers today is ownership of broadcast rights. Yahoo can't afford to outbid Disney on those rights and shareholders would never support risking that much capital on such.

I'm talking about web-based content first. Anyone who follows sports knows that there is a wide open gap ready for someone to take a swing on actual sports coverage. ESPN has turned into a steaming pile of trash. You want more articles on Johnny Manziel, have at it ESPN. We're gonna cover real sports on my Yahoo.

The better broadcasting play is to get into streaming / broadcasting for new sports. Be it eSports, rugby, lacrosse, and any scrap of basketball you can get your hands on -- NFL is going to collapse in the next generation or so (ask any Gen-X parents if their kids are allowed to play football and you'll understand why) -- so just give up on getting rights to the current powerhouse sports for the time being.

> What you're describing would never make money.

Killer content always makes money when you know your demographic and don't sell your soul too much. I wouldn't emphasize the aggregators, those would be portals. The trick is that much of it would be re-written on the actual Yahoo site by real journalists once something gets hot. Then you no longer give the traffic away.

> It would be a complete waste of time and wouldn't move the needle on Yahoo's business.

This is because you don't know how to monetize. Content isn't the end game, it's the easy advertising. Yahoo! Finance is an under-utilized tool. The content on a powerful domain like that would be used to inexpensively gather new users into the profitable toolset - the end game could be to build out a trading platform, for instance.

LOL at Yahoo's needle, BTW.

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#85
post #70

When I consider Yahoo's value, I think of email, fantasy football, news, and tumblr. All four seem to be struggling when compared to their alternatives, but each of the products appear to have great potential value. It's hard to determine the quality of Mayer's work as CEO; some decisions were good, some look bad. I'm not confident she is a product person, and this is based on her management of Tumblr and the lack of…

Isn't Yahoo Fantasy the #1 fantasy property (not including daily fantasy)? Also all of these are ad supported products -- and no amount of premium/freemium add-ons are going to make more money than what these have made historically on advertising. It's barely worth considering anything other than ad supported models.

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#86
post #70

When I consider Yahoo's value, I think of email, fantasy football, news, and tumblr. All four seem to be struggling when compared to their alternatives, but each of the products appear to have great potential value. It's hard to determine the quality of Mayer's work as CEO; some decisions were good, some look bad. I'm not confident she is a product person, and this is based on her management of Tumblr and the lack of…

Were I to take on Yahoo, I'd turn it into a content powerhouse, with supporting tools. Yahoo! Finance should have the best articles -- very technical yet explanatory -- all supported by their stock tools. A billion ways to monetize that. I would use Yahoo! Sports to seriously go after ESPN, which is turning into a turdpile of garbage that's worse than TMZ. I'd literally troll them and get some extremely technical con…

You would invest time and effort and money in overtaking much larger or smaller, leaner properties that are all experiencing negative growth in an industry that has seen a bottoming out of it's primary revenue source and a race to the bottom in quality?

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#87
post #83
post #45

Earlier quoted context omitted.

Big misconception: Yahoo is profitable, it's just not growing.

Why does it need to grow? Maybe growth is limited, and when it's not, it's dangerous.

You have to give shareholders a return through stock growth or through dividends.

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#89
I don't know what is going on here but my bet is it has more to do with rich people doing tricky stuff with money than a vote of confidence in Yahoo, its products or potential to make money

If I was saddled with a dinosaur like Yahoo I would split it up and try and get some cash then rename what was left and I still think you would just be delaying the inevitable. The Yahoo name has about as much value as Netscape or Novell. It pretty much says outdated, failed technology company that has been overtaken by the competition.

Re: Warren Buffett and Dan Gilbert Unite in Bid to Acquire Yahoo

#90

Earlier quoted context omitted.

Were I to take on Yahoo, I'd turn it into a content powerhouse, with supporting tools. Yahoo! Finance should have the best articles -- very technical yet explanatory -- all supported by their stock tools. A billion ways to monetize that. I would use Yahoo! Sports to seriously go after ESPN, which is turning into a turdpile of garbage that's worse than TMZ. I'd literally troll them and get some extremely technical con…

You would invest time and effort and money in overtaking much larger or smaller, leaner properties that are all experiencing negative growth in an industry that has seen a bottoming out of it's primary revenue source and a race to the bottom in quality?

> a race to the bottom in quality?

There's your issue.

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