Thursday, October 27, 2011

Alibaba & Yahoo

For years Yahoo has been overshadowed by Google and, to a lesser extent, Facebook. For when I heard that China’s internet giant Alibaba Group is trying to buy over Yahoo, I wasn’t that surprised. However Yahoo! Inc. co- founder Jerry Yang quietly came out to say his company isn’t necessarily up for sale but is “merely” looking at all options.

Frankly, it doesn’t matter. To me, the big news is how a well-known American internet company is being looked at as a takeover target by a Chinese internet company. Both are well known internet giants but it says a lot for China economic growth (and potential) that the Alibaba Group is a potential buyer of Yahoo Inc., not the other way around.

So in more ways than one, whether it happens or not, the potential takeover of Alibaba of Yahoo is a watershed event. Not just for the internet, but for the whole of the business world as well.

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