The acquisition would provide Apple with a search and email rival for Google. It would give Apple a platform to expand its web presence as well as a turn as a content provider on the "most visited frontpage on the internet." As the recent Yahoo earnings have shown, CEO Marissa Mayer has done a wonderful job turning around Yahoo. Yahoo is now in a position to take share back away from Google with the right partnerships.
it is inevitable that Apple will need to do bigger acquisitions and/or move into new areas beyond just selling phones, computers, iPads, and TVs. The bigger they become, the more difficult it is to keep growing earnings 90% a year.”