Is Facebook about to buy Yahoo!?


Facebook (Nasdaq: FB) COO Sheryl Sandberg didn’t waste any time in making Yahoo!‘s (Nasdaq: YHOO) new hire feel welcome.

“Congratulations to Marissa Mayer,” she posted on Facebook just a couple of hours after Marissa Mayer was tapped as the dot-com pioneer’s new leader. “Great news for women (and men!) across Silicon Valley. All of us at Facebook look forward to working with you in your new role.”

She then went on to thank interim CEO Ross Levinsohn for helping re-establish the relationship between the two companies.

Online giants don’t always take sides publicly, but it’s OK for one former Google (Nasdaq: GOOG) executive to congratulate another former Google executive. Big G’s two most prolific female executives are now working at Google competitors, and that’s interesting.

Facebook’s ally has been Microsoft (Nasdaq: MSFT), acquiring an early stake in Mark Zuckerberg’s company and stepping up as its first major online advertising partner. Since Yahoo! outsources its search business through Microsoft’s Bing, there’s nothing fishy about having a Facebook executive respond kindly to Yahoo!’s new leader.

However, isn’t it just a matter of time before Facebook and Yahoo! get cosier?

Facebook is now the stickiest site in cyberspace, attracting the majority of its more than 900 million active users on any given day — and often for long stretches of time. Facebook has to be the biggest threat to the search engines of Google and even partner Microsoft, because you never know when it’s going to flip the switch and begin offering its own search platform.

Yahoo!, anyone?

Yahoo! also has the content, marketing relationships, and Asian assets that Facebook lacks. Think about it a bit, and the pieces do come together.

It would also be fitting. Yahoo! once tried to buy Facebook, so it would be poetic justice if Facebook snapped up Yahoo! Nobody’s going to think about that now, of course. Mayer is there with fresh ideas to turn Yahoo!’s stagnant top line around. However, over time, don’t be surprised if the two companies gravitate to one another as a meandering yet undervalued Yahoo! and a growing yet overvalued Facebook realise that there’s something there.

If you’re in the market for some high yielding ASX shares, look no further than our “Secure Your Future with 3 Rock-Solid Dividend Stocks” report. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

 More reading

The Motley Fools purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

A version of this article, written by Rick Aristotle Munarriz, originally appeared on fool.com

OUR #1 DIVIDEND PICK FOR 2016...

Forget BHP and Woolworths. This "dirt cheap" company is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for hungry investors, including SMSFs, this ASX company could be the "holy grail" of dividend plays for 2016.

Enter your email below to discover the name, code and a full investment analysis in our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2016.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.