E-mail readers of this column don’t have an easy way to leave comments so of course they send them straight to me, which is easily done simply by hitting reply. Other bloggers are smarter than I am and don’t use their actual e-mail address for the feed. The trend this morning among my e-mailers is to see the hiring of Marissa Mayer at Yahoo as some kind of trick by Google. Ms. Mayer is Google to the core, readers say, and she’s going to Yahoo simply as a commando to pick and choose future Google acquisitions.
No, she isn’t.
But I can’t write just a two paragraph column so I’ll go on to suggest what I think Ms. Mayer could do as CEO of Yahoo, which might even have modest success, though probably not in Internet terms.
That’s an issue here because we speak of Yahoo as though it’s dead when in fact it is very profitable. Newspaper chains would kill to post Yahoo’s numbers. But on the Internet, where up-up-up is the norm, just up is bad, and flat is failure (pay attention Facebook — what happened to your subscriber growth?). Internet rules are very different than rules for the rest of American business.
Nevertheless, Marissa Mayer is not facing a Steve Jobs-type opportunity at Yahoo, nor does she present a threat to Google.
Mayer was maxed-out at Google. Yes, they could have taken heroic measures to keep her but they didn’t, just as they didn’t when Tim Armstrong went to AOL. Google doesn’t care about Marissa Mayer and doesn’t care about Yahoo, either. There are no parts to acquire, since Google already duplicates everything at Yahoo. The best they can hope is to acquire Yahoo customers.
Marissa Mayer will try to show Google how wrong they were to let her go and she’ll do that through product, which is her thing. So she’ll do what Carol Bartz would have done had Bartz come from Google and realized how little time she actually had to affect change at Yahoo. If she’s as smart as she’s supposed to be, Mayer will shut down all the bits of Yahoo that don’t make money, which is half of the company.
Shutting things down has been difficult to do at Yahoo because the company is very bureaucratic (thank you Terry Semel) and byzantine in its structure to the point where it isn’t clear at the top what a lot of those moving parts below actually do. Which parts to shut down? Which parts are dependent on other parts and dare we risk shutting down the wrong parts? None of this is insurmountable except at Yahoo anyone who is still there is pretty determined to stay, so like Sergeant Schultz, they know nothing!
But this is come-to-Jesus time for Yahoo and Marissa Mayer has a small window of opportunity to do audacious things, like shut down all the parts of the business that aren’t contributing to profit. Boom! Shut it down. This will goose earnings terrifically.
Remember Yahoo is in the process of selling its Asian holdings. That will go forward liberating a huge wad of cash, most of which will go to current shareholders. I’m not sure that’s the best use of this windfall, but the political reality is that it will happen. However if I had been Marissa Mayer negotiating my deal with Yahoo I’d demand that at least some of that cash stay in the corporate coffers. It would be pretty easy to argue that a slimmed-down Yahoo could show a better return on that money than shareholders will see in alternate investments. I hope she cut that sort of deal.
But even if she didn’t, Yahoo is still a rich company. And with that money Mayer will likely go on an acquisition binge to create an app suite like Google’s, which Yahoo presently does not have. The company’s strong position in Mail is the key here. Those 310 million customers are the very heart of Yahoo and they have stuck with the company because they like the mail product. It’s a no-brainer, then, to clone Google Apps for these people. And the way to clone Google Apps is through acquisition and integration. There are plenty of companies to buy and plenty of new DNA to be acquired with those companies, which is the other reason for buying rather than building.
Yahoo needs not so much to be reorganized as to be reborn: radical change is required and that requires new blood.
There are limits to what Yahoo can do to emulate Google. Mayer won’t do a mobile OS, for example, because she can’t win at that game (if Microsoft can’t win, Yahoo can’t win) but she’ll be sure to extend her apps across all mobile platforms.
Then there’s that nagging question about whether Yahoo is a media company, a content company, an Internet company, what? The obvious answer is that Yahoo will play to its strengths and invest in growth markets, which include mobile and video. This may sound like a dodge but it isn’t. The question is unfair for one thing. Yahoo doesn’t have to be entirely one thing or another as long as all the parts are headed in the same direction.
Questions like this one, in my view, always come down to figuring how Ronald Reagan would have spun it.
Yahoo, tear down this wall!
The key to Yahoo’s content strategy is CEO-until-yesterday Ross Levinsohn, who should be encouraged to stay with the company. The way to keep Levinsohn is to take some of that cash and very publicly give him a $1+ billion fund to acquire video content.
That kind of money can change the game in Hollywood.
Yahoo 2.0, if done correctly, will ultimately be a third the size it is today in terms of head count, be even more profitable, and might well survive.
Will Marissa Mayer actually do these things? I don’t know.
Funny, I was just watching a little news story on TV about the meteoric growth of the FOX television network after they acquired the NFL rights. Could a similar story happen at Yahoo? Could they have something up their sleeve that will catapult them to major player status?
with all that vaunted internal development, the answer is… maybe. but I will bet it’s all in silos, so nobody sees that half of KillerApp is over here, a third over there, and you guys who keep coming to the cooler, aren’t you doing a little something that might be glue for this and that?
so it will come down to buying applets from outside and stitching them together.
the third prophet here speaks. bumble willies.
Well, based on that picture, if she promises to spend a lot of time in the development offices, she could convince a lot of young male programmers to come work there on the cheap. My goodness.
The only hope for Yahoo is to reinstate the message boards. Remember those? What Yahoo had was a true public forum on a global scale with no censorship whatsoever with literally thousands of posts for every news feed. Anyone who understood and used these boards knew the sheer power of information at their disposal. You never had to go anywhere else to get a good understanding of the subject at hand. Many times I-witnesses of a certain event would chime in and give their view of the subject or experts in any particular field would give their expertise with plenty of links to do further research without having to go from news site to news site and sift through all the mainstream garbage like we NOW do. Yes there were the trolls, but they helped keep everyone else honest because nobody in their right mind wanted to be a troll. The Yahoo message boards will be sorely missed by anyone who used them regularly and are what made Yahoo YAHOO! When they were quietly withdrawn Yahoo was relegated to being just another worthless portal.
Messge boards are old school and never brought in any revenue…Yahoo needs a way to find a way to new growth.
Message boards bring in viewers that look at advertisements. Not old school at all.
Message boards and forums see the same faces every day. And 99.9% of the posts are useless too.
Try searching for your latest technical problem and you’ll find loads of replies telling you that someone else has the same problem. Or that they’d not have got in to the same problem because of…. Or how to solve a completely different problem from the one the original poster has asked about!
Eventually the solution usually appears…sometimes after refining your search terms. If you know a better way to solve the latest technical problems, please share.
In my experience, ad clickthrough rates are very low on forums. If your forums are busy enough, you might still be able to make money, but you’ll need more traffic (and thus more spent on infrastructure) to make the same amount from ads that a different kind of site could make.
First of all, we’re not talking about your favorite handyman site for fixing your toilet problems. We’re discussing what was a major news site with millions of viewers and posters every day, discussing a myriad of subjects on what was THE greatest public forum in the history of the world, snuffed out by a visionless ,dumb**s corporation. We were betrayed. Simple as that.
I used to go to Yahoo for all my internet shopping needs. They were THE shopping search engine of the net. However, I stopped going completely once Yahoo started only listing sites that they had a business arrangement with. Since I could no longer trust their search results to give me the best price for a given item, I moved on to other search engines. I wonder if they realize that?
(as an aside, Google is losing rank in my estimation for this as well, and for their lack of concern for my internet browsing privacy — Google is third on my search engine list now, and they are still declining — and I even own some of their stock. I only decision now is when do I sell the stock…)
310 million Mail users? How many use Yahoo as a crap account for websites that just have to have an email addy, How many bother closing them when they stop using them? Even ATT (my ISP, G-d help me) uses Yahoo Mail now for their subscribers – but I only go to the ATT/Yahoo page when there is an email problem.
Personally, I view someone with a Yahoo email addy the same way as someone with Hotmail, AOL or Mail.com account – an amateur armed with a spam factory.
I miss my first email address SteveD@home.com.
and to fish out your false positive e-mail from the AT&T/Yahoo spam folder . . .
Alright…
So I’m going out on a limb here. (I’ve been reading some articles.)
“RIM AND YAHOO! SHOULD ALIGN AND PARTNER.”
Reasons and Examples: Microsoft and Nokia
Google and Asus, Motorola
HP and Oracle (possibly)
RIM has the Playbook which supports flash and java. The price has dropped to the $200 and the $300 range for all models 16gb to 64gb. Great value and perfect timing to accelerate/stigmatize the market. And who markets… Yahoo? … Who?! “YAHOO!!!” Yes I know RIM is Canadian and not Silicon Valley oriented, but both companies are in dire straits and need desparately to put their foot down in the marketplace. Now is that time!
So RIM has this year old Playbook that blows away the Kindle, Nook and all other 7 in. tablets with its recent firmware upgrade in February. The upgrade also allowed for Android compatibility. Genius! RIM just has not been able to create marketability and that’s where Yahoo! comes in. Exploits itself as the rising sun with the business savvy publishing tools of RIM. They can integrate one another into the burgeoning marketshare that they are trying to gain traction in.
I wish them the best of luck.
RIM
Some more insight and why Yahoo! can capitalize on expanding its market share into mobile, social networking and Yahoo! or “Yo!” Marketplace. I’d shop at “Yo!” I’d be Yahoo! like a yo yo for Yahoo! (Yes there is room for one more marketplace on the internet. Because I sure as hell am not going to buy from Facebook. Yesterday MySpace.)
Anyways… I like Yahoo! because they have good content and organize it well. It’s not a social network. It’s more like a mall or shopping center. You go in look around read what you like, admire what interests you and then get out before you realize you’ve been reading for the last 45 minutes. Good conversation type stuff. It’s entertainment
! Newsworthy and relied upon by ABC News in New York. It will survive and be a game changer in regards to information and publishing tools on the go.
Good Luck Yahoo! Good Luck RIM!
I’m really inspired with your writing skills as neatly as with the structure to your blog. Is that this a paid topic or did you modify it yourself? Anyway keep up the excellent quality writing, it is rare to look a nice blog like this one these days..
SPAMMER! CRAWL AWAY AND CHOKE PLEASE!
You can tell its a spambot because it is so positive towards the original article. That’s just unnatural in a comments section.
Take the core businesses and do them better than anybody else. Then they’ll get the money flowing.
Google are the biggest in search because they’re the ones who give you the best quality results. As much as I try to use Bing as an alternative they simply don’t give the same standard of results. Yahoo, however, does just pip them.
They have the luxury that they’re still profitable, so use that to become the best at those core businesses. It’s all rather simple really.
I pay Yahoo! actual money for my email service.
They’ve got an excellent spam filter, and you don’t need to use your Yahoo! address – you can send mail from any address you can verify.
Yeah some of my clients pay for their Yahoo email too but that changes once it breaks and they try for a month or two with ten different techs to get it working again. Yahoo’s mail servers are just not stable. In the end I think half of my clients end up taking my suggestion and invest in their own domain name and hosting, it’s the professional thing to do if you are a professional whatever. The other half switch to GMail and half of them do GMail for your domain, which is not as smooth as I’d like but Google seems to have smart, empowered people dealing with trouble tickets.
Satisfied yahoo email user here. I kept the account after switching to gmail. I use it for every web login account that requires an email address and it does a very good job keeping the spam out of my gmail account. Possible business model: mining yahoo mail inboxes and creating a tool that keeps track of logins/passwords for rarely visited, but occasionally useful sites.
One other thing that surprises me… Yahoo finance is still better than google finance despite the fact that that they appear to have invested very little in it over the past 5 or so years… This is a potentially very valuable property and an area where google has really dropped the ball in my view. (Their goal is organizing the worlds information yet they don’t have an amazing tool for searching, manipulating and displaying info from Edgar. Why?!??)
Has Google spent a dime on Google finance? Doubtful. Isn’t there anybody at Google who trades stocks? Who says to himself, hey, there are 10 really easy ways to improve Google finance and generate more ads? No? OK.
I think Yahoo and AOL should join forces and then relocate to the island of lost toys. Believe me, no one will miss them.
Yahoo! needs to re-discover customer service. Not Google or Microsoft F-you customer service, but real customer service.
I have subscribed and paid for ATT (now ATT/Yahoo) email for many years. Recently all my mail older than 5/30/2011 just went poof, and there is no support, no phone number, no email, no hman being anywhere to contact, no nothing. And don’t tell me I should have backed it up because it is impossible to back up your Yahoo email, there are no archiving tools. I would gladly pay somebody to attempt to help me with this problem. Message boards aren’t a substitute for real support, support that can be escalated to the point where the problem gets fixed.
“And don’t tell me I should have backed it up because it is impossible to back up your Yahoo email, there are no archiving tools. I would gladly pay somebody to attempt to help me with this problem.”
What I did was create a gmail account, and told it to import all the mails from the yahoo account.
It didn`t import form the sent folder, only the inbox.
Then I probably used “gmail backup” to download as .eml files to my hard disk.
My two cents.
I think a cloud-based email solution is mainly for “multiple device senders”. That way all their mail (including the folder structure of sent, inbox, drafts, etc) is in the cloud and accessible from any device. But if you send from only one PC it’s easy to view from any device prior to downloading to the main sending PC. Ideally, we would like a client that can be installed on multiple devices and keeps all the folders in sync with a cloud copy. Windows Live Mail does this by using Hotmail’s HTTP protocol with “delta sync”: http://en.wikipedia.org/wiki/DeltaSync . WLM can be a bit complex and confusing; hopefully the new built-in Mail client that comes with Windows8/RT will be simpler to use.
I gave up my yahoo mail years ago when, for some unknown reason, required me to do a captcha everytime I logged in. Even with glasses I would fail about 3 out of 4 of the captchas. After a couple of days of that I gave up and quit using Yahoo mail. Set my vacation message so if people do email me there they realize I no longer check my email there.
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SPAMMER!! CRAWL AWAY AND CHOKE PLEASE!!
Hey Glen,
You rock! Keep barking the Spam away.
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As a “Yahoo customer” (I pay for Yahoo! Mail) I kind of disagree.
They already have an App thingy integrated into Yahoo! Mail, but they keep making me do things that I don’t want to do. For instance, they added an app permenantly to Yahoo! Mail that links to your Facebook account so you can do Facebook chat with others logged into Facebook. I want to remove it.
But then, let me be clear – I have Yahoo! Mail for one reason and one reason only – I haven’t found the time to find something else. There’s not much else out there that only costs $20-$30 per year and offers decent mail support and POP3/SMTP access. Raise the price, and I’ll certainly move on sooner than later. I’m already looking to move on if only I could find something of equal value and not much more in price.
Part of the big kicker for me wanting to go elsewhere was when Yahoo! shutdown Geocities. I used that little site – with only 10 MB of space – for quite a few things – including my personal resume and software project portfolio. But it is no more, and I need a website. Again, nothing of comparable value – Google’s equivalent locks you into a series of templates from which you cannot deviate.
So shutting down things won’t necessarily do the trick. It may push users away and cost more than it did to simply leave it running. That’s not to say that Yahoo! doesn’t have things that should be shut down, only that they need to reallly evaluate the impact of doing so before they do (something that seems to have gotten overlooked in the Geocities shutdown).
What? Marissa Mayer goes commando?
Good luck with all of that.
Judging from the comments, it looks like Yahoo is an email provider that people love to hate and even has the nerve to charge people to download their mail!
C’mon Cringe… slap some cold water on your face and wake up. If yahoo could execute a business strategy, they would have done it already. They are too bureaucratic, so NOTHING GETS DONE. Look at all the old tech companies. They all eventually become Honeywell or Zerox or Kodac. One day it all just crumbles and hardly anyone notices, because the patient had been in a coma for years.
Yes, that is Apple’s fate as well. Steve was exceptional. Now that he’s gone, the bean counters will slowly take over and it will be curtains for innovation. In another year or two that will become apparent.
Yes, Cringely discussed the bureaucratic problems in the previous column. Now he’s saying the new CEO needs to reduce its size by two thirds.
Ich glaube, die Fakten in Ihrem Zuschreibung geschrieben ist wirklich super. Ich habe seit der Arbeit auf einer vorläufigen Analyse Mission zu diesem Thema und Ihr Weblog wirklich mit einer Vielzahl von Überlegungen, die ich hatte geholfen. Ich erstelle eine Hausarbeit für die Schule und ich? M folgen derzeit viele Blogs für die Bewertung.
This is a good tip particularly to those fresh to the blogosphere. Simple but very accurate information… Appreciate your sharing this one. A must read post!
The reason Google didnt fight to keep her is simple. She doesnt matter. What did she do? Name exactly what she accomplished besides being a cute woman, reasonably smart. She did exactly what? Google’s state today would be no different with or without her. Google is: Oingo/Applied Semantics, Youtube and Android. All were bought from the outside. Google is great at inventing this mystique. Its hilarious. Its a cool company, but the real barn busting game changing innovation was bought and brought in.
Except for Youtube, the other stuff wasn’t available to me before Google.
There were other quite good search engines. In fact a large number of technologies from other search engines came to google. Also there was iOS before Android. Adwords/Adsense wasnt available per se, but buying advertising online certainly was. So lets not put Google on a pedestal. They are good at infrastructure, decent at execution (google+ shows not perfect), but they arent humanity’s salvation. In fact, they help the USA and Chinese Police States enforce rights-destroying laws quite often. So give it a rest on the Google love. They are important, but hardly infalliable. And Marissa Mayer doesn’t matter. Neither does Meg Whitman. The people INVENTING and INNOVATING matter, not the corporate pirates in charge.
There were horses and buggies before cars. There is nothing new under the sun; just new ways to do it.
Your Hero?
youtube dot com mcSujceZDmg
http://youtube.com/mcSujceZDmg
“This content cannot be displayed in a frame…To help protect the security of information you enter into this website, the publisher of this content does not allow it to be displayed in a frame.”
Same here 🙁 He should have told us the name of the video, it would have been easier
I’m not sure it’s possible to save Yahoo anymore, but if it is, she’s the person to do it
I have to agree with you.She seems the right person to change things at Yahoo and therefore to save it.Thanks for the informations!
I second that.Marissa Mayer is the right person to reborn Yahoo.An oppinion from outside the company is better,because she can see things objectively.Great article!
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And likewise, you can’t just “do a mailing” and have that be the only marketing you do.
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