Internet Weekly Notes: Google, Yahoo and Amazon
The last week Google (NASDAQ:GOOG) was plagued again by patent issues as Microsoft (NASDAQ:MSFT) struck a licensing deal with Samsung, one of Google’s largest Android partners. In the same period, Yahoo’s (NASDAQ:YHOO) fate of being sold off seemingly turned from speculation to inevitability, with the company feeble attempts at new products doing little to comfort its investors and employees. In an interesting turn of events, Alibaba is now looking at buying Yahoo after it has tried for years to buy back its stake. Finally, Amazon (NASDAQ:AMZN) launched its much-anticipated Kindle Fire tablet. Priced at $199, Amazon stands to gain significant scale for its e-commerce and content business through tablet sales.
The Motorola Mobility (NYSE:MMI) acquisition does not seem be helping Google in fending off patent infringement. Samsung has now become the ninth Android partner to have signed a license deal with Microsoft. While Microsoft could not be any happier, this only means higher royalties being paid by Samsung for every sale of its smartphone, including the wildly popular Galaxy S-II. Whether Google itself jumps to an offensive using Motorola’s own 17,000+ patents is something to watch out for in future.
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See Google Groans as Microsoft Strikes Samsung Licensing Deal
See Our Full Analysis For Google’s Stock
Yahoo
The speculation has steadily turned to certainty. Yahoo is almost certain to be sold off with even the company management hinting at the same in an internal memo to employees. The only questions remaining are how much Yahoo’s assets are being valued and how investors or acquirers would view its Asian and US assets. Alibaba’s founder Jack Ma is looking into a bid for Yahoo after trying for years to buy back Yahoo’s 43% stake in Alibaba.
Key issues here will be addressing US authorities’ privacy concerns over having a China based Internet company owning one of the largest US based Internet companies.
See Yahoo’s Answer to Its Display Ad Problems: Integrate With Facebook
See Despite Selling-Off Anticipation, Yahoo Tries Some Feeble Attempts with New Products
See Our Full Analysis For Yahoo’s Stock
Amazon
Amazon’s much-hyped tablet, the Kindle Fire, was finally launched amidst a lot of media attention. Priced at a low $199, the 7-inch tablet might not be considered a direct competitor to the iPad. However, what Amazon is probably striving to achieve is expanding the scale of its e-commerce and e-content business through the Kindle Fire. With buyers getting free 1-month subscriptions to Amazon services such as Prime and instant videos, the company hopes that increased shopping for merchandise and e-content would easily offset any losses Amazon incurs on the tablet hardware.
See Kindle Fire to Significantly Build Scale for Amazon
See Our Full Analysis for Amazon’s Stock
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