Wednesday, August 16, 2006

Om is covering the Comcast story

Om Malik has picked up on AdAge "Comcast wants to be Yahoo" story. And he's taking the modern web party line I predicted yesterday.
How old fashioned! Still, I wonder the wisdom of this move, especially since the company is fighting the triple play battle with politically more savvy phone companies. Shouldn’t that be the focus? I think this is yet another example of “google envy.”
With the exception of Yahoo, the portal plays made by all comers have been cash guzzlers. Google for all its reach, or Microsoft for all its might and AOL - all are still a distant second compared to Yahoo, the one true portal.
Mickeleh's Take: Om is right. Comcast will never topple Yahoo! But they don't have to. Take the long tail view of things. There's money to be made farther down the tail. Comcast may also be betting on the end of net neutrality to give them a performance advantage or a new revenue stream. The cable pipe is still the place where TV networks want to be and that gives Comcast huge leverage for content deals.

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Anonymous said...

Maybe Comcast is just doing this to raise their valuation before they're acquired by Google.