A lot changes have been occurring at Yahoo in recent days. After a lot of anticipation, Yahoo finally chose Scott Thompson as it’s new CEO. Scott is the President of PayPal. As soon as Scott was chosen as the new CEO, Yahoo’s share value has fallen down. This is because Wall Street analysts think that Scott has no background in media and may not be able to play well enough. On the other hand, some are suggesting that he may go on to purchase Netflix as one of his earliest moves.
This suggestion was actually put forward by Gene Munster, an eminent analyst who represents Piper Jaffray. Gene had a conference call with Scott Thompson after he was chosen the CEO. In the conference call, he asked Scott that what does he want to change Yahoo and where does he see Yahoo going with his arrival. Scott responded that in his view, Yahoo needs to work on the amount of media, content and engagement on the website and to improve it a lot. Munster also suggested to the new CEO that maybe Yahoo can acquire Netflix now. This, Munster told Scott, can be a great move since Yahoo can get it on cheap right now. Munster also said that Yahoo’s decision of choosing Scott as a CEO is not a bad one since Scott had taken PayPal to great new heights of success and can do the same to Yahoo.
An interesting aspect of this whole episode is that Netflix’s shares were trading at about $73 before this interview happened. As soon as this interview happened and Gene Munster suggested that Yahoo may buy Netflix, the share price has risen steadily and is currently stationed at $80!
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