The dollar is very weak now.  At close to $1.5 per euro some call it the new peso.  European companies are hurting when it gets to export but at the same time they have an incredible currency as their market caps in dollars are going through the roof.  Telefonica for example is worth around $160bn, that´s serious money when Verizon, the second largest US mobile and fixed line operator is only worth $124bn.  And some huge internet companies are now very affordable to a company like Telefonica including Yahoo which has a market cap of $35bn and Ebay, of $45bn.  Only a few years ago the market caps of Verizon, Yahoo, and eBay were all larger than that of Telefonica.  I think that this is the time for Telefonica and many other European companies whose earnings are mostly in euros to diversify their profit base and go into major acquisitions on the other side of the Atlantic.  And I am saying this knowing that it´s traditionally been hard for Asian and Europeans to manage Americans.

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Gustavo L on December 2, 2007  · 

I think you are absolutely correct. Once we see the first acquisition then I believe you will see a frenzy to follow. After all, it is always a herd mentality, but nobody wants to be the first one.

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Manuel on December 2, 2007  · 

Totally agree, now is the good time to go shopping in the U.S. (and not only European corporations, but also individuals!)

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Julian Martinez on December 2, 2007  · 

I completely agree, now is the time for someone like Telefonica or Vodafone to buy Yahoo.

There are many new business opportunities if a company has the service/teco mix in their core business. If the wireless operators don’t start developing web services, they are soon going to become a plain utility company.

If Google gets hold of a 3G license and manages to generate revenues from wireless products, then the Telcos are in deep trouble. Right now I think that the only companies that will be able to compete with Google 5 years down the line are Microsoft, News Corp and come Telcos if they evolve into Internet players too.

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Antoin O Lachtnain on December 3, 2007  · 

I don’t know. Buying yahoo would be a dangerous thing to do right now. It’s a company with plenty of potential but maybe that’s the problem – i just don’t see that an acquirer could maximize the value. Yahoo could do an altavista and lose its way pretty easily. If the right team could be found to make it work, anything is possible.

Having telcos running content/media companies is not necessarily a good idea. the style required is very different. That is probably why I don’t think VF or Telefonica could get that much value. Maybe some of the big european publishers or broadcasters could though?

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XL on December 3, 2007  · 

Did you hate Yahoo??? I could understand that you don’t like e-bay, because they fired your friend. But Yahoo… Why???

If TEF bougth them they will dissapear as TERRA, Lycos… they aren’t capable to manage young companies in irregular markets.

Endemol, TPI, Terra, Lycos… all of them were succesfull beafore we bougth by TEF.

The best that they can do is bougth business that they can manage and with regular markets like Motorola who could be a good supplier and create some synergies

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neoyorquina on December 4, 2007  · 

Any thoughts(reactions) from European readers of this blog about Airbus considering moving some of its manufacturing to the U.S.?

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willdom on December 4, 2007  · 

YES! you are right…. I think the Iberdrola Renovable IPO will bring some mergers with american Energy companies

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vqp on December 5, 2007  · 

The people’s republic of US
Some of the most important conditions that made China a supercompetitive beast are all present in the current US economic situation, to wit:
– devaluated currency.
– hard working people
– submissive unions
– authoritarian politic leadership
– uneven income distribution.
– nationalism
These are the exact components for a productivity explosion bomb. You better buy all the american assets your euros can buy.

3.0 rating

Massimo Moruzzi on December 7, 2007  · 

at the very least, buy Kelkoo and Yahoo’s European Operations.

3.0 rating

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