Sad! Yahoo is selling off its internet business

Sad! Yahoo is selling off its internet business

Yahoo has begun accepting final bids for the sale of its internet business. The bids which covers Yahoo’s search, email, advertising and media operations, are reportedly due today.  The decision to sell off this once revered technology giant follows several unsuccessful attempts at revamping the business. In today’s world, Yahoo Messenger no longer has significance

Yahoo has begun accepting final bids for the sale of its internet business. The bids which covers Yahoo’s search, email, advertising and media operations, are reportedly due today.  The decision to sell off this once revered technology giant follows several unsuccessful attempts at revamping the business. In today’s world, Yahoo Messenger no longer has significance where we have Facebook’s Whats App and Blackberry’s Messenger reigns. I still remember vividly when the thing was to own a Yahoo email add. Now, it’s like HR wouldn’t even take you seriously if you include the same email add in your CV. It’s like an unwritten recruitment code for shortlisting candidates.

Though Yahoo.com still gets about 6 billion visits monthly but it’s nothing compared to Google’s 29.6 billion. Since hiring Marissa Mayer as President and Chief Executive, the company has reportedly recorded lesser earnings year after year. Last year, the company did $5 billion in revenues. 42 percent was contributed by its search business. Google did $21.3 billion in Q4 2015 alone.

Photo Credit: Snyder Online Marketing

Photo Credit: Snyder Online Marketing

Within the company, Marissa has reportedly been unable to motivate and keep Yahoo’s top talents. Many do not agree with her decisions and have defected to competitors. In her defence, the low employee morale had been a problem before her appointed. But Yahoo’s board also accuse her of not being cost effective. For example, she authorized a $375 million per annum deal for the default search engine spot on Firefox when Mozilla’s previous client, Google was paying about $275 million for the same web prominence.

ayam sorry

Yahoo CEO Merissa Mayer

Yahoo’s board has decided to severe its non-performing $6 billion-valued business from the $40 billon lucrative investment arm in Alibaba and 35 percent stake in Yahoo Japan. The board will keep the investments. The internet business has to go. So far, AT&T, Verizon Communications, a number of private equity firms and a Dan Gilbert (Quicken Loans co-founder) who is getting financial backing from Warren Buffett’s Berkshire Hathaway, have shown interest.

While some of the private equity firms’ plans for Yahoo include going on a cost-cutting spree while experimenting ways to profitable monetize Yahoo’s large audience, Verizon’s plans probably include merging Yahoo’s internet business with AOL, another onetime online giant in its portfolio.

Sad. Such nostalgic memories many Africans have for Yahoo. It was our rite of passage to the internet experience…

 

Adegoke Oyeniyi
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