Yahoo! Property Breakdown and Sum of the Parts

Rumors are circulating about another attempt by Microsoft to acquire part of Yahoo!. The latest rumorssuggest that Microsoft will try to buy Yahoo! Search with a media company (i.e. Time Warner or News Corp) absorbing the rest of the business. To put the value of the search business in context, I wanted to share a breakdown of traffic to the top 20 Yahoo! properties. Also, I’ve compared clickstream traffic to these top Yahoo! Properties from Google and Yahoo! to show that these Yahoo! properties would not be lost without search.

The following table shows the top 20 Yahoo! Properties based on share of US Internet visits among websites in the custom category of 20 websites.

Yahoo! Property Breakdown.png

I’ll admit, I went into this analysis thinking that the data would show that Yahoo! was worth more together – I thought that the sum of the whole would be greater than the parts. However after looking more closely at the data, I’m not sure that is necessarily true.

The following chart shows the share of upstream visits to each of those 20 properties from search.yahoo.com and http://www.google.com. Most properties receive more traffic from Google than from Yahoo! Search. In particular, Yahoo! Answers received 49% of its US visits from Google last month, compared to 20% from Yahoo! Search. Flickr received 13% of visits from Google compared with 5% from Yahoo! Search. The exceptions are Yahoo! Image Search and Maps, likely because of Google’s shortcuts to its own properties in these verticals, and the Yahoo! account pages. Even Yahoo! Mail and Yahoo.com received more traffic from Google than Yahoo! Search. .
upstream to Yahoo.png

Whether Yahoo! is better kept whole or split up I can’t say. What I can say is that the parts of Yahoo! are quite valuable and wouldn’t necessarily be lost without the search engine.

p.s :Taken from: here

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