Who's going to buy Yahoo?

There was speculation a few weeks ago that Microsoft had Yahoo in its sights. There were denials all around and maybe it wasn't so. But, this terrific online asset (full disclosure: I own Yahoo shares) is likely to attract other media players that current lack a large scale web presence.

My bet for Yahoo's most likely and most logical buyer is on GE. You heard it here first! Consider that GE's NBC Universal is beginning to exploit its broadcast network/studio assets on the web, most recently through the announced venture with News Corp, but otherwise GE has yet to establish a significant online presence. A media company that has ambitions to become and remain a major force in the information/entertainment/communications field has to be on the web, where much of the action is and where Yahoo is still the world's largest destination. GE’s strategy is to be the biggest in each of its markets and I expect GE will decide that being a heavy hitter on the web is key to its future role as a major media company. Buying Yahoo would instantly establish GE as a big web player and, moreso than most potential acquirers, GE can afford it.

Unless it changes course and unloads NBC Universal, I think a huge online acquisition like Yahoo is in the cards for GE, and it’s hard to think of a web business more like Yahoo than Yahoo itself.