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10.17.07
Yang Shares Some Yahoo Strategy
By David A. Utter
After an earnings announcement that beat Wall Street expectations, Yahoo CEO and co-founder Jerry Yang revealed a little more of what he thinks the company needs to do.
In after-hours trading since Yang and company disclosed earnings of 11 cents per share, which beat an 8 cents per share consensus, Yahoo's stock improved to $29.
Continuing this trend will be Yang's mission.
He provided some more details of the strategy to do this on the official Yahoo blog. Yang named three big multi-year objectives for the business:
Become the starting point for the most consumers; Become the must-buy for advertisers; Deliver open, industry-leading platforms that attract the most publishers and developers.
Yahoo's users, not to mention the market, should be just as interested in what Yahoo plans to stop doing:
Our new decision-making framework also informed what we’d no longer invest in. To start, we’ve de-emphasized our focus on subscription music in favor of ad-supported music, migrated Yahoo! Photos to Flickr, we intend to transition Yahoo! 360 to a more integrated Yahoo! “profile” experience, we’ve closed Yahoo! Podcasts and plan to shut down a number of one-off services, and we’re currently assessing our options for our Kelkoo comparison shopping service in Europe. We’ve identified still more areas and we’ll continue to work through them.
Observers may give some credit to Brad Garlinghouse and his Peanut Butter memo from November 2006.
That called for a sensible paring of redundant services. It sounds like Yang is taking that advice.
About the Author:
David Utter is a staff writer for WebProNews covering technology and business.
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