Tuesday, January 29, 2008

GigaOM: Yahoo! should change its travel strategy and buy Priceline, Orbitz or Expedia

Yahoo! is in trouble. Stock is down almost a third in the last twelve months, big layoffs are coming (as many as 2,500), CEO Semel is out and many of the senior execs have followed leaving founder Jerry Yang in charge. John Battelle dug up an old quote Nov 2001 that effectively says that Yahoo has been looking for a turnaround strategy for six plus years. Even Kevin May at Travolution is worried.

Sramana Mitra guest editing on GigaOM has a post offering a number of revolutionary solutions (read acquisitions) for each of the major sectors that Yahoo! operate in, including this
"Yahoo has also made a move in online travel, but is not a top performer. Priceline, Expedia and Orbitz are all monetizing the segment. Yahoo should acquire one of them, and become a serious player."
Revolutionary to say the least but Yahoo! actually has a precedent for operating a travel retail business (rather that just a media business). In Japan Yahoo! Travel is an operating travel buseinss (also known as Tavigator) is a joint venture between Yahoo! Japan, JTB (Japan's and one of the world's largest travel companies) and uber Japanese investment house Softbank (itself an investor in Yahoo! Japan).

What do you rate the chances of this?


samdaams said...

Not sure what the chances are of this happening but I'll take anything that is good for the share price (which I actually don't think this would be). I'm long on Yahoo at the moment ;)

What these guys really need is to launch their advertising solution a la Adsense on a global scale. There's a lot of site owners looking for alternatives to Adsense.

Alistair Lattimore said...

They would certainly have the infrastructure and existing agreements with serious media players to help bolster such a deal too.

Anonymous said...

i agree on these topic, like sam said im not also sure for these change

Anonymous said...

Yahoo are in serious trouble. But what do you predict it to be like in say 5 years from now? Any thoughts on that?