Is BrightRoll a good buy for Yahoo? Pros and cons
TechCrunch reported Tuesday that Yahoo (YHOO) was in talks to buy video ad company BrightRoll for about $700 million. Brightroll was a 2014 CNBC Disruptor company . Whether or not the deal comes to fruition, should Yahoo buy the company?
Both Yahoo and CEO Marissa Mayer are the targets of as much criticism and second guessing as any technology executive in recent years, and this possible deal naturally finds analysts who are cautiously optimistic (well-compiled in this Wall Street Journal story from Wednesday), and witheringly critical (check out some analysts comments in this Business Insider story).
Among the positive points listed in the WSJ story:
Negative analysts say, among other things, that deficiencies within Yahoo will undermine any potential benefit of a deal. Other problems include:
Still, some people like the company (or at least its stock). Passport Capital's John Burbank explained to CNBC Wednesday morning why he's long YHOO. Hint: It has nothing to do with the core business .