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Tuesday, August 12, 2014

Buzzfeed chatter everywhere. Think $yhoo

So one of the top, if not THE top, VC firm (a16z) makes a splashy, media blitz-heavy investment into BuzzFeed. Great. Another high profile firm sees value in "new" media, and the investment thesis includes:

-distribution of content
-native advertising

Want to invest in a similar thesis, and are able to via public markets? Look at Yahoo.

Its got, and working on, all of the above. Sum-of-its-parts valuation places zero, zero, worth in a concept a16z just valued around a billion dollars. 

A difference between Yahoo and BuzzFeed? Buzzfeed is heavily reliant on social network traffic, while Yahoo consistently ranks 1 or 2 amongst ComScore most visited properties. Yahoo mobile properties aren't too shabby either, with over 400 million users.

But of course, the street is a whore for momentum. So until Yahoo's transition starts to become evident, investors like Eric Jackson will keep shitting on Meyers.  Funny thing about momentum whores, they tend to ignore the subtleties that create the momentum in the first place. For instance, Eric Jackson shat on Facebook just before it started its momentum. Piss poor timing. 

Yahoo has made transition, and I am hoping its working. Previous earnings report didnt tell us much because Yahoo is not giving investors a breakdown between desktop vs mobile. But the pieces are in place for Yahoo to work again.

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