DealZone

Bunch of Yahoos

October 29, 2009

A string of Yahoo sales, engineering and product executives took the stage on Wednesday in the company’s first full-day briefing with analysts since May 2006, all with a mantra that came down from on high: “Today is the beginning of a journey back to respect,” said CEO Carol Bartz.

With page views increasing, Carl Icahn having drawn in his horns, and the company extending a deadline for finalizing a search agreement with Microsoft, the time was right for a love-in.

Finance Chief Tim Morse said Yahoo expects to achieve operating margins between 15 percent and 20 percent by 2012. After the third quarter’s “pathetic” 6 percent, shareholders would certainly consider that a more respectful performance.

Another way to show their respect would have been to give specific details on the engineering involved in the promised prestige. Executives said Yahoo would achieve the new margin targets by accelerating its revenue in the next few years, but demurred from providing a specific revenue growth target.

The company said it would invest in editorial staff to produce more original features, and tweak its online products to keep users on the site longer and boost advertising revenue.

Hiring more staff and investing in ad search wizardry will certainly add to costs, so the need for a little more Internet alchemy could require a leap of faith to engineer the recovery in esteem Yahoo hopes to achieve.

Comments
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Yahoo’s plan is to go the monopolization route of MS and have themselves bundled into Windows. Market infiltration by forcing people to accept them as their default homepage will be their key to further saturation from Yahoo. Much like they did by tricking people into accepting their Yahoo toolbar in the past. As when kids clicked on an online game ad and didn’t notice they deeply installed the Yahoo toolbar in exchange to play. Then the track folks like a creepy stalker to spy on and record their online movement trends. If you can’t get the public to love you naturally, force yourself upon them the MS way. Real nice!

 

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