What will Verizon do with Yahoo?
The decline of Yahoo! has long fascinated me. Here are some earlier postings on the subject:
- Microsoft is 2000 times less effective than Google; Yahoo Board seems to be insane
- Microsoft/Yahoo Redux
- It is no wonder those Yahoo guys aren’t doing well (2008, four years before Marissa Mayer took over)
- Why is it hard for Yahoo to make more money? (2014, two years after Marissa Mayer took over)
- Did ad blockers and Facebook kill Yahoo?
- Programming considered harmful? (Yahoo)
- Yahoo sale will reveal true value of a CEO?
What happens next, though? Verizon could conduct an experiment by letting a $200,000/year manager handle the Yahoo! division. Then see how this person’s performance compares to what Mayer was able do in exchange for hundreds of millions of dollars in personal compensation. But that still leaves the question of what the manager would actually change?
Personally I’m sticking to my theory that there are still a huge number of useful applications that nobody is providing to Internet users. I think that Yahoo! could code its way out of the pit. But Verizon is not known as a software company. In the late 1990s I was telling everyone who would listen (i.e., mom and dad) that mobile phone companies would be the vendors of all kinds of services, e.g., hotel room and restaurant reservations, because the phone company knew where you were and the phone had a web browser on it (well, a WAP/WML browser anyway). Like other U.S. carriers, Verizon hasn’t done anything like that.
Readers: What strategy would you pursue if you were running Yahoo! on behalf of Verizon?
[Separately, Marissa Mayer is apparently blaming the smoking crater that she left shareholders with on “gender-charged reporting” by the media: “Yahoo CEO Marissa Mayer Accuses Media of Gender-Biased Reporting” (Fortune, July 25, 2016). If Marissa had changed gender ID to “male” during her time at Yahoo! would the company then have been able to add some value on top of their shareholdings in Alibaba?]
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