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Main > Archives > 2008 > February > Yahoo Buys Maven, Courts AOL

Tuesday, February 12, 2008

Yahoo Buys Maven, Courts AOL

Yahoo made a smart move in buying Maven Networks. Now the company has a distribution mechanism for its online advertising platform and expand its audience of advertisers.

Video is expected to be the fastest growing component of online advertising and will therefore becoming increasingly important to down-in-the-dumps Yahoo's stock.

Merging with AOL, however, makes no sense. The company's are redundant in much of their technology and services. The primary outcome would be a raft of layoffs, and not much new. The added complexity is that AOL is already using Google's advertising services, so unless Yahoo thinks it can do a better job at monetizing (unlikely), Yahoo would be tied to a feared competitor.

Microsoft will up its ante, but that won't be enough.

I've talked about Comcast buying AOL before, and if TimeWarner doesn't want that outcome, then perhaps Comcast should go after Yahoo. Yahoo's niche is for premium content, news and entertainment searches, all which would benefit Comcast as it looks to takes Internet content into the cable realm.

This is a soap opera that is worthy of marketer's attention. A bad acquisition by any of Google's competition could diminish alternatives for advertisers.

By John Gartner at 09:41 AM | Comments (0)

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