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Are Google (GOOG) And Yahoo! (YHOO) Buying Into India?

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By Douglas A. McIntyre Published
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The Hindustan Times is reporting that Yahoo! (YHOO) and Google (GOOG) may be making bids for Indian web portal Rediff (REDF). The price would be as high as $1 billion. The news comes at the same time that Barron’s warns that the price of Indian net companies may becoming much too high. The magazine says that Rediff’s market cap is 13X the size of the entire online ad market in the country.

But, Google and Yahoo! may feel that they cannot afford to make the same mistake that they did in China where market leader Baidu (BIDU) has taken a significant lead, especially in the search area. Both of the US companies have tried to take share from Baidu, but without any success.

As in other bidding for new business, Google has the advantage that its earnings are less likely to be diluted because they are so much larger than Yahoo!’s. Also Google has more "capital" with a market cap of $172 billion compared to Yahoo! at $36 billion.

No one should be surprised it Google buy Rediff. It makes too much sense.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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