4 ms·

Fantastic analysis. But where's the money? The point of Calcanis' piece is that the Borg only gets (buys?) its way into markets which are big or growing. Whils

Fantastic analysis. But where's the money? The point of Calcanis' piece is that the Borg only gets (buys?) its way into markets which are big or growing. Whilst there is no doubt Yahoo is strong in some areas, he's saying Yahoo has thrown-in the towel in the big fat one. He argues that Yahoo had more than one chance of being a player in search and each time they fluffed it. All the current focus-on-core-strengths talk doesn't cover up the fact that they blew the big one. That's his point, and I think it's a very valid one.

rabidgnat 17y ago
"But where's the money?" It's not in search, as far as Yahoo is concerned. Having gigantic teams dedicated to tweaking search algorithms and running servers was obviously not working out to Yahoo's advantage in the long run... they were losing market share to Bing, and who knows how much they were spending to try to innovate in search? As far as I know, they've been losing money on searching for a long time. Is Yahoo ever going to be rolling in money again? No, and maybe not ever. However, they have a metric ton of products that can generate revenue: commercial licenses for service APIs, cloud computing resources, etc, and now they'll be focusing more on their advertising (which is REALLY where the money is these days). As far as staying afloat as a company not raking in the big dollars, this was probably the best bet without some major upheaval. They can focus and develop and sell things that actually might have a chance at making some money.