Three years ago, Yahoo and Microsoft signed an agreement to search for outsourcing to the Bing, but retains the right to sell search ads on its Web site. At that time, Yahoo is the second largest after Google's search service provider. Many people believe that this transaction will help Yahoo to reduce costs, increase revenues. This is also an agreement between Yahoo and Microsoft reasons.
But the reality is not the case. Yahoo is currently the third largest search provider, to give up search technology initiative, while the revenue is not a substantial increase, the cost has not dropped significantly.
Yahoo's search business revenue has been rapidly declining. Last year, Yahoo's search revenues fell from $ 3,200,000,000 to $ 1,900,000,000, fell 7 percent in 2010. Yahoo's search business revenue of approximately $ 4,000,000,000 in 2008, accounting for 52% of total revenue, further landslides last year to 37%.
Over the past four years, Yahoo showed basically no change in advertising revenues of $ 2 billion in 2008, $ 2.2 billion last year. View of the search business, only half of display advertising business on the rise, the importance of Yahoo's revenues rose from 28 percent in 2008 rose to 43 percent last year.
Yahoo CEO Scott Thompson (Scott Thompson) how to deal with the search business? , A prominent blogger Carla Siwei Shen (Kara Swisher) two weeks ago reported that the current "anything is possible. Yahoo is considering measures including the possible sale or a substantial reorganization of the advertising technology business, affected employees will reach 10 According to the negotiations with Microsoft and Google, the search business of 1500 employees may also be affected. "
Industry insiders estimate that Yahoo will soon be selling advertising business. Yahoo may not be able to recover $ 524 million acquisition of Right Media in 2007, but the sale price may be higher than many people expected.
In addition to Siwei Shen, insiders mentioned Yahoo to abandon Microsoft in favor of cooperation with Google, the reason may well be that no one thinks that Yahoo and Google.
U.S. Department of Justice has halted cooperation between Yahoo and Google, Microsoft seems to be the only possible partner in Yahoo. But Yahoo can at any time to suspend cooperation with Microsoft.
Yahoo may partner with Google? Yahoo is currently the world's third largest search provider, the power of the search market is far less in 2008.
Yahoo may renegotiate with Microsoft? May, of course, so far, the deal for Yahoo is very bad. According to the calculation of Siwei Shen, Yahoo's search business still has 1500 employees, but revenue came in rapid landslides. Microsoft and Yahoo, to extend the life of the transaction, it is the Bing, not Yahoo favorable.
Insiders pointed out that Yahoo should be completely out of the search business. The following reasons:
· Investors in the sale and purchase of Yahoo shares, not the search business. At present, the market value of all of Yahoo's core business is negative. Close the search business will not have any impact on stock prices.
Yahoo will now save the cost of 1500 employees of the search business. This will make Yahoo last week, laying off 2000 employees, saving $ 375 million on the basis of further savings of $ 300 million.
Share best online shop: