Diller buys Jeeves, and Yahoo! buys Flickr: who got the better deal?
My latest article at Netimperative looks at these two deals: Barry Diller’s IAC/InterActive buying Ask.com (aka Ask Jeeves, the search engine) for $1.85 billion (which isn’t even a billion pounds - watch that exchange rate go south!) while Yahoo! is buying Flickr, the photo sharing site, for something that (I now find) is rumoured at about $15 million, or a thousand times less.
In brief, I don’t think Diller’s made a wise purchase in buying the fifth-ranked search engine which has Google, Microsoft and Yahoo *and* AOL ahead of it.
Whereas Yahoo’s move looks very canny. And if the price is correct, it’s a steal.
(Photo sharing sites are getting big - HP just gobbled up Snapfish.)
Bonus Netimperative link: Mike Butcher’s interesting analysis of where AOL is going:
AOL will effectively give up its past emphasis on media and content in favour of producing software tools, combined with Internet access, to become a kind of “BT with bells on”.
simple. Despite being the world’s largest Internet service provider, AOL has been losing subscribers in recent years. In the US alone it lost about 2 million subscribers last year.
It needs a way out.
And the route is not through yet more content and shopping “channels” - way of the old AOL.
- These posts might be related (the database thinks..):
- How Yahoo takes good stuff, and makes it bad, from Flickr to music videos (16 September 2005; score: 77.18%)
- First thought on eBay buys Skype (12 September 2005; score: 65.11%)
- At last, a Flickr account (11 May 2005; score: 57.89%)



