John

Reuters: Google and Amazon Will Pwn The Internets

In News on June 4, 2008 at 4:20 am

So just who are the long-term survivors of the Internet in the near future? Internet analyst Jeffery Lindsay published a 310-page report on speculating the future thrivers and losers, coming out with the conclusion that Google and Amazon will prosper, while Yahoo! will drop our of the game and be acquired.

One of the key reasons for internet companies losing out, he says, is losing their grip on their core competencies–a point that was argued about in Douglas Rushkoff’s excellent book, Get Back In The Box: Innovation from The Inside Out. You can read an interview on him regarding the book here.

From Reuters:

An Internet analyst for a major Wall Street firm argues in a new report that Google Inc and Amazon.com Inc will be long-term winners, while Yahoo and IAC InterActiveCorp fall by the wayside and eBay Inc becomes a merger target.

Sanford C. Bernstein analyst Jeffrey Lindsay argues in a 310-page report entitled “U.S. Internet: The End of the Beginning” to be published on Tuesday that Google and Amazon are best placed to withstand the current economic downturn.

“We expect two players to continue to perform strongly, Google and Amazon,” Lindsay writes. “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.”

Lindsay reiterates his previous positions that Yahoo eventually will be sold to Microsoft Corp and that Barry Diller’s IAC e-commerce conglomerate will go ahead in August with its five-way split-up, as planned.

“Arguably the weakest players have strayed furthest from their original competences and have been operating largely as conglomerates,” the Bernstein analyst says of Yahoo and IAC.

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