This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

It's Time to Sell Yahoo!

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.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FB $93.43 -3.70%
YHOO $37.39 -0.74%
AAPL $122.10 -0.72%
GOOG $625.84 -0.96%
TSLA $263.72 -0.04%

Markets

Chart of I:DJI
DOW 17,685.48 -65.91 -0.37%
S&P 500 2,095.81 -12.76 -0.61%
NASDAQ 5,071.4960 -40.2370 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs