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Yahoo!'s Next Takeover Target: A Payment Processor?

Stocks in this article: YHOO BAC AAPL EBAY AMZN PAY

NEW YORK ( TheStreet) -- Investors can almost feel the renewed energy and excitement coming from Yahoo!'s (YHOO) corporate headquarters in Sunnyvale, Calif., since Marissa Mayer took the helm as CEO about a year ago.

YHOO Chart YHOO data by YCharts

Shareholders more than believe it -- they are experiencing more than a 40% surge in share price from this time last year. On Monday, I wrote "Yahoo!: The Best Is Yet to Come" that touches on expected disruptions to eBay (EBAY) and Amazon (AMZN) if/when Alibaba enters the North America market.

eBay and Amazon have more to worry about than Alibaba -- they have Yahoo! on its own merits. If Amazon's CEO Jeff Bezos and eBay's CEO John Donahoe aren't staying up at night worrying, they should be. When you think of online shopping, the two biggest names today are Amazon and eBay, but that wasn't always the case.

Yahoo! once dominated the online commerce world with Yahoo! Shopping. Yahoo! even had an auction site that was a serious alternative to eBay until management screwed it up like so many other Yahoo! properties. But that was then, and this is the new now with Mayers guiding Yahoo! back to prosperity.

I don't mean Mayer is simply turning around the company and extracting greater shareholder value; I'm talking about grabbing the encompassing debilitating discombobulation known as Yahoo! by the neck and choking it into submission. The potential for Yahoo! to return to its glory is right there for the taking and Mayer knows it.

Mayer's leadership is why the market continues allocating greater amounts of capital into the stock. Usually when a company buys other companies the shares take a hit as a result of the greater uncertainty. In Yahoo!'s case, the shares continue to rise as Mayer removes the uncertainty of how aggressive Yahoo! is under the new command.

You can travel back to the dot-com boom days and not find a year that Yahoo! bought more companies than Mayer's Yahoo took over in 2013 and we're only half-way through the year. Despite the buying binge and Yahoo!'s shopping portal, there remains one key element missing from the Sunnyvale's business tool chest.

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