Forbes  Oct 1  Comment 
On January 27, 2015, Board of Directors of Yahoo! Inc. (NASDAQ: YHOO, $28.91, Market Capitalization of $27.2 billion) announced a spin-off of its remaining holdings in Alibaba Group (NYSE: BABA) into a newly formed independent registered...
TechCrunch  Oct 1  Comment 
 A while back, Yahoo quietly made the code to Omid, an open source transaction processing system for the Apache HBase Hadoop big data store, available on GitHub. This is the same software the company uses internally to help it power thousands of...
Yahoo  Sep 30  Comment 
As you might expect, the top of the latest Forbes 400 list is riddled with familiar names like Walton, Gates and Buffett, but Yahoo Finance dug a little deeper to see who the youngest billionaires (and they’re all billionaires) were to make the...
TechCrunch  Sep 30  Comment 
 Yahoo recently donated 200 servers to Howard University, a historically black university, and the University of Texas at El Paso, where the majority of the students are Mexican-American. This is the first time Yahoo has donated servers to the...
Forbes  Sep 30  Comment 
Yahoo failed to get a ruling from the IRS but is spinning off its Alibaba holdings without one. The big winner may be tax opinions which now could eclipse IRS rulings in many other transactions too.
TheStreet.com  Sep 29  Comment 
NEW YORK (TheStreet) -- Yahoo!  shares got a boost Tuesday after the company announced it was ready to spin off its $22 billion stake in e-commerce giant Alibaba . It's ready to do so despite investors' concerns of a multi-billion-dollar...
Wall Street Journal  Sep 29  Comment 
Even if Yahoo can avoid taxes on the spinoff of its Alibaba stake, its investors will be left with a challenged company.
Benzinga  Sep 29  Comment 
The Phoenix Companies, Inc. (NYSE: PNX) shares climbed 151.27 percent to $32.74. The volume of Phoenix Companies shares traded was 1092 percent higher than normal. Nassau Reinsurance Group announced plans to acquire Phoenix Companies for $37.50...
Forbes  Sep 29  Comment 
In early trading on Tuesday, shares of Yahoo! (YHOO) topped the list of the day's best performing components of the S&P 500 index, trading up 4.7%. Year to date, Yahoo! has lost about 42.8% of its value.


Yahoo! Inc. (Nasdaq: YHOO) is a global internet services company that operates the Yahoo! Internet portal. It provides varied products and content, from email and search to media streaming and downloads. Its main revenue sources come from advertising and marketing services. In fiscal year 2010, Yahoo reported revenues of $6.3 billion and net income of $1.2 billion. While Yahoo's main presence is in the United States, its well-established name and solid partnerships in Asia make international expansion a promising opportunity for the company. In response to the fast growing mobile advertising market, Yahoo has been actively pursuing partnerships with carriers and original equipment manufacturers in the mobile industry, as well as tailoring their existing marketing services to mobile users.

Company Overview

Founded as a web directory by two Stanford graduates in 1994, Yahoo! had become a dominant player in the field of Internet services although its competitive position has since become eclipsed by Google and others. The company had experienced healthy growth in top-line revenue year over year for the last four years, but net income has fallen year-over-year due to increased costs of doing business in the increasingly competitive sphere of internet advertising. Specifically, Yahoo!'s year over year cost of revenue is increasing faster than their revenue growth.

Trends and Forces

Increase in Online Advertising

Advertising spending continues to show a disproportionate skew in favor of newspaper, TV and direct mail. However, the Internet channel has grown at approximately 18% per year--faster than any other channel--taking share from stagnant channels such as newspaper, which has been flat over the same time period. Continued growth in quality and availability of Internet access means that the Internet services sector--particularly Internet advertising--will remain lucrative for some time to come. An increasingly pronounced trend of replacing print directories and classifieds with virtual alternatives will also create a push for online search use as well as increase demand for online classifieds.

Online Video Advertising Growth

Video advertising promises to be a particularly lucrative area of rapid growth in the online advertising sector as online video viewership continues to rise. In research released by comScore, data shows that 175 million U.S. Internet users watched online video content in October for an average of 15.1 hours per viewer.[1]. In terms of video property and viewership, Yahoo ranked second with 53.8 million viewers, behind Google Sites's 146.3 million unique viewers and ahead of Viacom Digital, VEVO, and Facebook[1].

  • Branded vs. Search Advertising

Branded advertising is often image-based and usually priced on an "impressions" basis--the more times it shows up, the more the advertiser pays. Search advertisements are primarily text-based and usually rely on click-through; the more times a particular link is clicked, the more Yahoo! is paid. Together, the two constitute a good balance of different kinds of online advertising. However, branded advertising tends to depend very heavily on the economic situation of the brands in question.

  • Mobile Advertising

Mobile advertising is in its nascent stages and is currently growing at more than 20% per year, making it a powerful source of potential growth for Yahoo! On its end, the company has been actively pursuing partnerships with carriers and original equipment manufacturers in the mobile industry, as well as tailoring their existing marketing services to mobile users.[2]


  • Google is Yahoo!'s biggest competitor in search advertising. Google's acquisition of popular video site YouTube put it directly against Yahoo! in media streaming, and the two already have a long-standing rivalry over search-based online advertising. Yahoo! has lost significant search market share to Google. In 2009, Google made headlines by overtaking Yahoo! in unique users per month. However, Yahoo! recently released a next-generation online advertising platform system called Panama. Their system will in theory optimize advertising profits by increasing the average revenue per search click and has returned modestly successful results so far. Yahoo!'s recent acquisitions of RightMedia and BlueLithium further solidifies its position in display advertising. Finally, Yahoo!'s perceived role as a community-based entertainment site may also give it a slight edge over Google in entertainment-based advertising. However, Google's MySpace-YouTube advertising alliance may be poised to challenge the company.
  • Microsoft, with the introduction of Windows Live and adCenter, Microsoft is also a growing threat. Microsoft's acquisition of LiveJournal gives it a significant foothold in the webblog scene, and along with Google, it has been steadily gaining ground against Yahoo! in the European Internet services market. However, by itself Microsoft remains less a threat than Google.
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