The investors are hoping for a second-coming of Steve Jobs but they are delusional. But they also have a profitable business. Instead of cutting all these verticals, I think they should build on them, as long as they are accretive to earnings. Yahoo has significant name brand recognition, especially amongst the 40-something and older.
Why not just build an entire lifestyle company around this? Yahoo Internet TV, Yahoo Banking, Yahoo Insurance, Yahoo Real Estate, etc. It might not make Wall Street happy because they're not growing 20% YoY but they would become a one-stop shop for everything a person would need on the Internet, and they can capture a lot of stickiness that way. They tried that to a certain degree but never to the amount of commitment that would make it stick. I think they should double-down and get things like banking and insurance in there, as well, so that people who need to pay bills, etc, will all use the same site.
And keep throwing shit on the wall and see what sticks, maybe they do come up with something that revitalizes them like an iPhone.
But their brand is the most valuable thing about them now, why not just expand horizontally into slower-growth but ultimately profitable businesses?
Why not just build an entire lifestyle company around this? Yahoo Internet TV, Yahoo Banking, Yahoo Insurance, Yahoo Real Estate, etc. It might not make Wall Street happy because they're not growing 20% YoY but they would become a one-stop shop for everything a person would need on the Internet, and they can capture a lot of stickiness that way. They tried that to a certain degree but never to the amount of commitment that would make it stick. I think they should double-down and get things like banking and insurance in there, as well, so that people who need to pay bills, etc, will all use the same site.
And keep throwing shit on the wall and see what sticks, maybe they do come up with something that revitalizes them like an iPhone.
But their brand is the most valuable thing about them now, why not just expand horizontally into slower-growth but ultimately profitable businesses?