Albert Einstein defined insanity as “doing the same thing over and over again and expecting different results”. Sadly, this resembles somehow Marissa Mayer’s strategic plan for the last couple of years of buying start-ups and is still in full force as Yahoo! Inc. (NASDAQ:YHOO) pursues investing in Snapchat, Bloomberg informed. However, the analogy above stands just to point that something could be done differently, if it hasn’t already evolved into a must.
“Mayer is closely investing in Snapchat in a funding round that values the start-up at about $10 billion, according to a person familiar with the matter. […] Snapchat makes a mobile application for sending photo messages that disappear instantly,” said Betty Liu.
The latest deal can be considered a bit more inspired than the attempts preceding it, however, it won’t be able to pull Yahoo! Inc. (NASDAQ:YHOO)’s price upwards by enough to secure a turnaround. At most it will help the dying company monetize its services to advertising companies as consumers are better reached through ads sent via Snapchat. It’s no wonder that Yahoo! Inc. (NASDAQ:YHOO) is considering taking the high way on mobile.
“Mayer is trying to build up Yahoo! products in areas such as mobile and messaging last month. Activist Investor Starboard Value urged Mayer to quit making acquisitions. Their suggestion she should either break up Yahoo! or she should combine with the smaller AOL,” continued Betty Liu.
It’s not clear how the two companies will work together and which one will benefit more, but Yahoo! Inc. (NASDAQ:YHOO) could try to reinvent itself to complement Snapchat. Anyways, since the company’s core products have been less popular there were many unsuccessful attempts to get it back on its feet. Hopefully, Marissa Mayer will get to say Thomas Edison’s words “I have not failed. I’ve just found 10,000 ways that won’t work”.
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