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Will Yahoo’s Cheap Acquisition Strategy Lead to Long Term Success?

January 16th, 2007

Read/Write Web has a nice post detailing Yahoo’s cheap acquisition strategy over the past couple of years. The implication is that although Yahoo was hammered by the media and investing community for not spending billions on YouTube and Facebook, they actually may have a good strategy in investing in cheap acquisitions that turn out to be big and very important down the road.

One could easily argue that Flickr and del.icio.us were very smart and cheap acquisitions, and that MyBlogLog and others could be much bigger than they are today.

Additionally, it’s nice that Read/Write Web was positive about Yahoo’s investment in my employer Right Media for our ability to monetize display advertising now and what innovations we may bring in the future.