Yahoo Turnaround Formula

Rumors have surfaced again today regarding Yahoo being a potential buyout target – this time from Private Equity.

From the Wall Street Journal:

While private-equity firms have long contemplated a deal for Yahoo, talks have heated up in recent weeks as several senior Yahoo employees have left the company, intensifying pressure on Yahoo Chief Executive Carol Bartz to prove she can turn the company around, the people familiar with the matter said.

Ms. Bartz has improved Yahoo’s profitability by cutting costs, but revenue hasn’t grown much and the company faces other problems. The Internet pioneer, for example, has shown fewer benefits than competitors from a broad recovery in display advertising—an area where it faces increasing competition from Google and Facebook Inc.

The company, which reports third-quarter earnings next week, claims that more than 600 million people use its home page, email service or other sites every month. But the number of Yahoo pages viewed by its users, known as “user engagement,” began shrinking in the second quarter. Yahoo also has seen a drop in the value of advertising against content that Yahoo pulls from other sources.

Ms. Bartz said in a recent interview she needed more time to pull off a turnaround.

I think the only way Carol Bartz can hope to turnaround Yahoo would be if she could get Yahoo engineers to build a time machine that flew the company back to 1999 at which point Yahoo could renegotiate their original search agreement with Google.
Then and only then could Yahoo change the reality of both its present and future destiny from what it actually is  – an online display advertising company.

Advertisements

Tags: ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: