Don’t write off Yahoo as yet.
After dismal performance and results announced for the quarter ending on Sept 2008, Yahoo has announced cut jobs.Yahoo! has around 15000 employees on its rolls. With announcement of 10% cut, 1500 numbers of employees will have to go.
Yahoo’s shares have fallen down nearly 40% during last three months. In June, Microsoft had offered to Yahoo $33 per share. Therefore at hindsight, the Yahoo’s decision to not to accept the takeover bid by Microsoft looks rank bad economics. But nobody had gauged the enormity of meltdown. The slowdown is continuing unabated. Yahoo for that matter all the bigwigs in search advertising domain will have to tighten their belts and look towards the Asian markets which could provide Yahoo a perfect alibi to riddle out of the position which the company finds itself in.
Google on the other hand is continuing to dominate the online search advertising market. Company holds about three-fourth share of online search advertising model. Microsoft has been cashing in at Yahoo’s expense. The coming years will be tough for all three major players in online advertising. Google is expected to continue to dominate the market because of its well established R&D program. Anyone who wants to challenge Google’s hegemony will have to work extra yard to match Google’s technological prowess.
May also like to read: Microsoft and Yahoo to take on Google.
I been watching the news and researching this topic.