More bad news for Yahoo in a report by a Wall Street analyst today, reports Reuters, which says Yahoo, IAC and eBay will all lose out to Google and Amazon.
"We expect two players to continue to perform strongly. Both Google and Amazon.com are still racking up annual growth rates in the 30-40 percent range, with only a relatively modest slowdown in sight." said Sanford C Bernstein analyst Jeffrey Lindsay.
Lindsay predicts Yahoo will eventually be sold to Microsoft, IAC will be continue its plan to split into five smaller firms and eBay could attract a Microsoft-style buyer if growth in its core auction business remains flat.
"Arguably the weakest players have strayed furthest from their original competences and have been operating largely as conglomerates."
In the short term a deal between Yahoo and Microsoft over search advertising could bring Yahoo a much needed boost. But Lindsay did warn that for Google to continue its phenomenal growth, it must crack the mobile web in the same way it has achieved success on the desktop.
