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October 29, 2006

What Should Yahoo Do to Keep Up?

Tim Arango & Adam Lashinsky at Fortune, break some interesting news about discussions between Yahoo! and Time Warner regarding a potential sale of AOL to Yahoo!

Long story short to, the article proposes that Yahoo pursue 4 options to ignite growth:

  • Buy AOL
  • Sell to Microsoft
  • Merge with eBay
  • Stay the course

Yahoo’s recent warnings about declining ad revenue from automotive and financial service companies knocked the company’s stock significantly. This warning coupled with Google’s strong earnings has led many to believe that Yahoo will continue to cede ground to Google in the Search realm.

Despite its pending release of Panama (they’re new search technology), it’s clear that Yahoo has to do something to jumpstart its stock, the currency it will likely use (at least partially) to fund future acquisitions such as Facebook.

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One comment for this post.

  1. Pingback from What should Yahoo do? at Sparkplug 9 >> bizhack on October 30th, 2006 :

    […] In my usual Sunday seach for SLOBs, I came across this interesting post: What should Yahoo! do to keep up? […]