Baidu..has a smaller revenue base and large market cap... access to a much larger market. They can easily leverage Yahoo capabilities to further monopolise their market and double Yahoo revenue in 2-3 years!
But I still think that MSFT, GOOG, or AAPL will end up acquiring Yahoo in 2H/10. AAPLE AND GOOGLE GO $4B - $6B up or down in valuation every day for no reason at all. IF GOOGLE buys YAHOO it would have eliminated its only direct comparable!!! Think what would that do to its stock price? Google is weak on content.
1) Notice that by offloading SEARCH TO MSN/BING, YAHOO has already dealt with the main antitrust issue...GOOGLE is basically free to acquire YAHOO!!
2) And YAHOO continues to focus on content every day and is cleverly creating a space for itself. While making themselves a more complementary fit with both Google and AAPL. The downside of their content centric strategy is covered by potential suitors.. AAPL, GOOG, and MSFT !!
Correct! Ballmer allready paying search costs for Yahoo while Yahoo has 88% of revenue! Better to go for it all! But Baidu getting stronger and stronger could buy Yahoo combined with a deal with Jack Ma/Alibaba Group! Ballmer with empty hands!