Will Yahoo turn around in 2010?

Image representing Yahoo! as depicted in Crunc...
Image via CrunchBase

Good news for Yahoo finally – more people around the world read their news than Google News or CNN. Some positive news about Yahoo after a long time now!!! Also, do you know that among the Top 500 sites on the web, Alexa rates two sites from Yahoo on the top-10.

Why then is Yahoo not doing well?

A look at the Trefis website on Yahoo is interesting – Search Advertising is 26.0% of the stock price estimate, and is the most important division. 24.8% of the price comes from Strategic investments (e.g. Yahoo Japan and Alibaba)

Recently, they tied up with Facebook and Microsoft, which meant that the search and the social networking functions were ‘outsourced’ to others.

There were a lot of expectations on the new CEO of Yahoo, Carol Bartz, to turn around the company. It has been 8 months since she took over and it is probably a little early to gauge her performance. She promised recently to increase revenue, cut costs thereby reviving the company.

Who needed the $100 million USD blitz on their advertising? The money could have been put to better use, definitely. A country-wide stunt similar to theirs in 2 airports would have garnered more mind-share. They did a week-long shutdown to cut costs – a good move again.

What does Yahoo need now? They need to come up with a product that is now currently not being focused by Google and carve their niche there – easy said than done. What is ‘that’ area? Games with virtual cash – this seems to be the new fad for internet users, according to the BBC site. Acquisitions will help too – look at EA’s recent buy of Playfish. Second Life probably? Why not?

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4 Responses to “Will Yahoo turn around in 2010?”

  1. Laura Says:

    Yahoo will never nab the top spot as long as it continues to ignore their users and insult their intelligence with the drivel it creates. — Laura (from http://terriblywrite.wordpress.com)

  2. Madhusudan Rao Says:

    One more API is turned off thanks to yet another partnership by Yahoo – check this – http://www.techcrunch.com/2010/01/11/yahoo-shopping-api-deadpool/

  3. Madhusudan Rao Says:

    Yet another move by Yahoo – sale of their Zimbra mail-suite to VMWare. Check http://kara.allthingsd.com/20100112/like-boomtown-said-vmware-buys-zimbra-from-yahoo-plus-the-full-press-release/

    Yahoo bought Zimbra earlier for $350 Million but now it has been sold for less. What is the strategy of the company now?

  4. Madhusudan Rao Says:

    Now, this – Yahoo! HotJobs bought by Monster

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