3 M&A Targets for Yahoo!

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NEW YORK ( TheStreet) -- Since Marissa Mayer took over Yahoo! (YHOO) , she's only done a few small acquisitions, known as "acqui-hires." However, that might change very soon.

AllThingsD reports that Yahoo!'s Jackie Reses, who heads the tech giant's M&A team, let slip at a company event that Yahoo! is working on two "significant" acquisitions and perhaps as many as six smaller talent "acqui-hires." (Reses, incidentally, also heads HR and was part of the firm's controversial work from home policy ).

Mayer has bought Stamped , a mobile review site, Snip.it, an online content organization company, and OnTheAir, a videoconferencing startup. These were all tiny transactions, though, and Yahoo! has a growing cash pile. The comany's cash haul was around $6 billion at the end of the fourth quarter , thanks in large part to a partial sale of its Alibaba stake.

With an increased cash pile, continued optimism surrounding the company, and the prospect of more money to come (from additional sales of its Asian assets), Mayer is eager to strike. Here are a few companies I think she could acquire with all her new found money, before it burns a hole in her pocket.

Pinterest

Pinterest, the hot content sharing service that allows members to "pin" images, videos and other objects to their pinboard, recently raised money that valued the company at $2.5 billion.

Pinterest hasn't generated any significant revenue yet, but the possibilities for the company are endless. I've long thought a heavyweight like Amazon (AMZN) would wind up buying Pinterest. You pin something you like, whether it be clothing or furnishings, and then go over to Amazon and buy it. It makes too much sense.

Buying Pinterest could help keep it out of the hands of rivals, as well. During this week's News Feed announcement , Facebook (FB) mentioned Pinterest several times, which I thought was rather odd.

Facebook has mentioned @ pinterested twice already.I wonder if there's a deal between the two??— Chris Ciaccia (@Commodity_Bull) March 7, 2013

Facebook CEO Mark Zuckerberg also described the new News Feed as "trying to give everyone the best personalized newspaper," which felt to me like a slight against Yahoo!'s newly redesigned home page.

Zynga

The problems with Zynga (ZYNGA) have long been known, but the company is starting to turn the ship around.

The San Francisco-based social gaming company recently turned a profit, earning 1 cent a share on $311.1 million in revenue. Daily active users (DAUs) climbed 12% year-over-year, and Zynga is still fairly cheap, when you strip out the $1.65 billion in cash and the huge San Francisco headquarters, which it owns. Having been to San Francisco a number of times over the past year, that real estate is not cheap, and it's in a prime location, 650 Townsend Street.