L2 Founder Scott Galloway spoke on Bloomberg TV today about Alibaba’s IPO and the effect on parent company Yahoo. Galloway said for the first time a a company is considered capable of competing with Amazon. He said there is a lot to love about Alibaba: 1/3 to half of shipments in China are inspired by the Alibaba platform, which hosts payment service Alipay, Uber and Tmall. However, displacing Amazon in the U.S. or Europe would not be easy.
Additionally, Yahoo’s core business is declining and that will become more transparent once Alibaba separates from its parent company in six months. Galloway said Yahoo plays the role of a venture capitalist without a successful core business. The core business online ad space where winners Google and Facebook own approximately 2/3 of online ads. See full video here.