INTERNATIONAL HERALD TRIBUNE -- Oct 8 -- A Sanford C. Bernstein analyst estimated the combined value of Yahoo!’s display advertising, search engine, and subscriptions business at $39 a share. Radical actions – like outsourcing services, cutting employees, and revamping advertising – could raise shares to $45, whereas a stay-the-course strategy would likely drop them to $25.
The full article was originally published at International Herald Tribune, but is no longer available.
Mark Brooks: Yahoo Personals is doing direct ad buys on properties other than Yahoo, and has become bolder with it's business development. Should it come out from underneath its mothers wing, completely. Your comments please.
Well, If the sum of the parts is less than the whole, than it would make sense to breakup the organzation and spinoff the personals business. But, I have the feeling that this is a cash cow business for yahoo and it would make sense to use it for supplemental income towards its other units. They could even sell off a piece of it for reveune and maintain a controlling stake. Or it could completly focus in on its main comptencies and sell everthing that is not search engine related. This is a clear indication of the begining of the maturity phase in the life cycle of internet search engines, if it hasnt started already. I would advise (free of charge:) to keep the business and use it as leverage for other endevours.
Posted by: Seawizard | Oct 09, 2007 at 08:54 PM