For starters, it would get access to Comcast's capital to improve its search experience, to improve its own video offerings, and to deliver a better cloud. Comcast's deep pockets could bring Yahoo! into the business cloud market, if not directly against Amazon (AMZN) and Google (GOOG), then at least against Hewlett-Packard (HPQ) and other second-tier cloud players.
Yahoo! would give Comcast a global footprint, and a global market through which Comcast would sell its video offerings, not as cable but as Yahoo! Internet video.
More important, Yahoo would bring Comcast Marissa Mayer. Mayer may not be the world's best tech executive, but she's not stupid, she knows how to do celebrity, she understands Silicon Valley and she could become a Mark Hurd (COO and heir-apparent at Oracle (ORCL)) next to Comcast CEO Brian Roberts' Larry Ellison (aging billionaire CEO and tech legend). Mayer is 38, a baby in CEO terms, while Roberts is 54.
In other words, just about everything fits. Yahoo! under Mayer has been reaching deep into the world of media, where Comcast has a dominant place. To keep growing Comcast needs a tech base, which Yahoo provides.It's sort of like Fred Astaire and Ginger Rogers. Comcast gives Yahoo! Wall Street class and gravitas, while Yahoo! makes Comcast sexy. As tech price-to-earnings multiples continue to come down to Earth (and Yahoo!'s is now just 28, against 19 for Comcast) this deal sounds less-and-less crazy. At the time of publication the author owned shares of AMZN, GOOG, CMCSA and YHOO. Follow @DanaBlankenhorn This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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