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Showing posts with label Yahoo news. Show all posts
Showing posts with label Yahoo news. Show all posts

September 8, 2011

The End of Yahoo: How Long Before its Sold off


There are few surer ways for an executive to lose a good reputation than to be CEO of Yahoo Inc. Just ask Carol Bartz or Terry Semel.This infographic, titled “The Rise And Fall Of Yahoo,” gives you a play by play of the company’s history, acquisitions, highs, lows and more.

As the company searches for Bartz's replacement, its biggest obstacle is likely the track record of past CEOs who have made this Hot Seat kind of Haunted.When Carol Bartz took the wheel at Yahoo! in January 2009 she was seen as the tough-talking, bottom-line oriented CEO who led software developer Autodesk to prodigious revenue and share price growth. One of her first acts was to tell employees that she would “drop-kick to fucking Mars” anyone who was caught leaking company secrets. Now it is Ms Bartz who has been drop-kicked out of the company.


Carol Bartz  as she left Yahoo Tuesday, she was viewed as an executive incapable of innovation and lacking vision, an executive who failed to move Yahoo's stock price or operating performance in any meaningful way.She is also widely seen as having made a bad deal to hand Yahoo's search engine operations to Microsoft.

"Bartz's demise underscores that fallen angels in the Internet space are really hard to turn around," Needham & Co. analyst Laura Martin wrote in a report Wednesday. "Her lack of success raises the risk that perhaps it simply can't be done by anyone (unless you're Steve Jobs).
On September 6th news leaked via AllThingsD,  that she had been ousted in a surprise coup by Yahoo!’s board. Official confirmation swiftly followed, with the news that Tim Morse, the firm’s chief financial officer, would take over as interim chief executive, supported by a leadership committee of senior managers.

Part of the reason Yahoo's CEOs face such difficulty is because, sources say, they are just one prong of a leadership trifecta, with the board and Yang also having significant input into the decision-making process. Those influential camps are often not on the same page.

For example, the decision to fire Bartz without naming a successor, along with the plan to initiate a "strategic review," suggested that the company was laying the groundwork for a sale or merger. But Yang told executives during a meeting on Wednesday morning that the company was not for sale, according to a person familiar with the matter.

April 21, 2011

The Unfolding of Yahoo Search Revenue Disaster


During the last two quarters, Microsoft has taken over Yahoo’s U.S. search advertising in return eventually for 12 percent of Yahoos’ search revenues. The red line shows what Yahoo got to keep after paying Microsoft, and the blue line is what it makes off of search before paying Microsoft. That blue line is down 8 percent in the last two quarters You can see the gap between the red and the blue lines in the second chart below. 

Yahoo continues to have consistent  lousy quarters. Revenues were down 6 percent, profits were down 28 percent. What’s more, it’s search partnership with Microsoft isn’t going so great. And the finger pointing is starting.

In a very detailed analysis, Danny Sullivan of SearchEngine Land charts the decline of Yahoo’s search revenues over the past two years. What he calls “net search revenues” (the money Yahoo gets to keep after paying off partners) is down 35 percent from a peak of $551 million two years ago to $357 million. He shows the decline in this first chart below. 

Before the fourth quarter of 2010, Yahoo used its own ad platform. But in late October 2010, it began carrying ads from Microsoft. This was part of the Yahoo-Microsoft deal, where Yahoo largely gave up having its own search technology and ad system, outsourcing this to Microsoft.

As part of the deal, Yahoo agreed to pay Microsoft 12 percent of its net search revenues. The red line reflects this, net revenues that were left after payments went out to Microsoft. This big new chunk of money flowing out is what Yahoo has been calling “headwind” that has accelerated its year-over-year growth decline.

 According to Techcrunch 
"The Microsoft Yahoo Deal  is not working out as planned, and Yahoo blames Microsoft. It’s not quite where it should be yet in terms of its revenue per search. Yahoo CEO Carol Bartz said during the earnings conference call:

"adCenter isn’t yet producing the RPS [revenue per search] we hoped for and are confident as possible."

What is implies is that  Microsoft is under-monetizing Yahoo's properties(search). And organic search results from Bing apparently are too good, which makes people click the paid search ads even less. Even Yahoo’s inflated search market share figures (due to slideshows and other forced search methods) weren’t enough to generate more revenues.