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It's Time to Sell Yahoo!

Stocks in this article: YHOO FB GOOG AMZN DIS FOXA CMCSA CBS

Yahoo!, and Mayer, would be lost inside another tech company, and so if I were on her board, I'd start with other media companies, all of which need a bigger web presence.

Disney (DIS) would be a candidate. Fox (FOXA) would be a candidate. Even Comcast (CMCSA) could be a fit. These companies have the market capitalization to acquire Yahoo! and retain its Alibaba stake.

But if Marissa Mayer wants a future as a CEO, there's really only one obvious choice: CBS (CBS).

CBS wants to be bigger in the Internet. CBS bought CNET almost a decade ago to get big in the Internet. CBS has even been making noises about becoming an Internet-only network if Aereo's streaming of over-the-air content is shown to be legal. 

If CBS really wants to do that, it needs Yahoo!. If CBS wants serious Internet revenue, it needs Yahoo!.

And if CBS CEO Les Moonves, 64, wants to show Wall Street he has a clear succession plan in place, he needs Yahoo!, and he needs Yahoo!'s CEO, who is not yet 40.

CBS' market cap of $35.11 billion could be a problem. Yahoo!'s cap of $34.53 billion would make a CBS deal a merger of equals. But most of Yahoo!'s market cap represents Alibaba, and could be cashed out readily, leaving CBS with $4 billion a year in Internet revenue, a mobile presence and a cloud with which it can carry out its threats of abandoning broadcasting.

Besides, for years people have been writing that Moonves is overpaid. Mayer would fit right in.

At the time of publication the author owned shares in Google, Amazon, Comcast and Yahoo!.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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