Yahoo buys BlueLithium; competing with Google?

Did I really read that right?? After buying RightMedia, Yahoo is now acquiring BlueLithium! Under Semel, Yahoo couldn't integrate Hershey's and milk on their best day!! Hopefully the new guard will perform substantially better, but I have my doubts. I see this as the new management's big splash saying "We can compete with Google!" Are you kidding me? Barely 2 months into their reign at Yahoo they likely haven't finished reading Stone Yamashita's recommendations on cleaning house internally. They can't expect to perform a successfully integration during the rumored massive reorg.

There are also some who say the BlueLithium acquisition might limit Microsoft's interest in acquiring Yahoo. I never really bought into the hype that Yahoo was a serious target. In fact, Yahoo makes a great pawn to point at and claim there's "competition" in the marketplace. However, the impressive ad network run by BlueLithium, now Yahoo, might be just the thing to entice Microsoft. Online advertising is an area where Microsoft is getting killed by Google and it might be easier to just buy marketshare than attempt to grow it organically.

I still don't see Microsoft buying Yahoo, but I'm not sure why this move makes Yahoo any less attractive of a target. I see it more as a $300 million marketing charge... Time will tell if it was a wise investment or Yahoo just needed some lithium.

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