What Is The Future of Yahoo?

There has been enough disappointment to go around when it comes to Yahoo of late. When Yahoo refused the buy-out offer from Microsoft, there was upset. When they subsequently turned around and inked an agreement to run Google ads on Yahoo, it irked shareholders and confused tech pundits. It seems like a complete sell-out and admission that Yahoo can’t sell ads on it’s own. Then we hear about several members of the Yahoo management leaving the company, including the founders of Flickr, the founder of Del.icio.us and others.

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And where does the focus end up? On CEO Jerry Yang.

Jerry Yang is most likely going to be out of his position as CEO of Yahoo. And he should be. Why?

The stats of Yahoo have not been good under Yang’s leadership. And this fiasco with Microsoft has only served to shed a more intense light on that.

In my opinion, Jerry Yang suffers from emotional attachment. He is one of the founders of Yahoo. He looks on Yahoo as his company and he doesn’t want to see anything he views as bad happen to it. He came in with a strong vision for the company, but practically none of what he said has come to fruition. Instead, we see executives leaving the company and Yahoo trying desperately to keep Microsoft off it’s back – despite it being in the best interests of the shareholders.

It is understandable that Yang, as a founder, has an emotional attachment to the company. But, this can get in the way of doing what is best and I personally believe that is what happened here. The ball was dropped out of pride. Yahoo went with perhaps the worse possible outcome – outsourcing their revenue to their competitor.

If Microsoft wanted to buy Yahoo to be #2 in the search field, they may just have done it anyway. Yahoo’s poor choices means the value of Yahoo has dropped quite a bit. It helps Google by growing their already large piece of the online advertising pie. It helps Microsoft because Yahoo is now seen as a floundering company. Perhaps Microsoft can come in later and now purchase Yahoo at an even cheaper price than they originally offered because Yahoo’s value has tanked so much.

Yahoo Needs To Pick a Market:

Yahoo is a schizophrenic company that has no real product anymore. They dabble in many things, but if asked exactly what the chief product of Yahoo is, few have an answer. They are not a search engine company, despite them sometimes trying to act like one. It seems as if Yahoo is made up of a bunch of independent companies, all doing their own thing.

Yahoo is more of a destination site. A portal, if you will. It is not a search engine and they should probably realize by now that they’re simply not going to compete adequately with Google in that area. Yahoo got it’s start as an online portal – a place where you go and you hang out online because Yahoo did almost everything.

The question is: Can this model survive in this current Internet world? There is now so much competition online that Yahoo blends into the scene now rather than being apparent as a leader.

Yahoo’s Future:

The future of the web is in personalization. It is about connecting people. Search is never going anywhere, but the importance of traditional search is waning as social media and social proof further drive traffic. This is why sites like Youtube, Myspace, Facebook and Yahoo are among the highest trafficked and stickiest sites on the Internet. These sites attract lots of attention, and that allows those companies to collect user information and ultimately sell things to those people.

Yahoo is, perhaps, in a much better position to capitalize on this than Google. Google is awesome at search. They’re awesome at search advertising. But, they are not awesome at presenting content and fostering online interaction. Yahoo is much better at this and I think this is where the future of Yahoo lies.

p.s : This artical is taken from pcmech.com

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One thought on “What Is The Future of Yahoo?

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