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Yahoo Capitulates - Gives Up Goal of Being #1 in Search

   
1:18 pm on Jan 24, 2006 (gmt 0)

WebmasterWorld Administrator brett_tabke is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



Bloomberg News [seattlepi.nwsource.com] interview of Chief Financial Officer Susan Decker:

"We don't think it's reasonable to assume we're going to gain a lot of share from Google," Chief Financial Officer Susan Decker said in an interview. "It's not our goal to be No. 1 in Internet search. We would be very happy to maintain our market share."
1:01 am on Jan 25, 2006 (gmt 0)

WebmasterWorld Senior Member billys is a WebmasterWorld Top Contributor of All Time 10+ Year Member



>>That's a poor analogy because Pepsi and Coke are in the same business to a much greater degree than Yahoo and Google are.

The Coca-Cola Company (Coca-Cola) manufactures, distributes and markets non-alcoholic beverage concentrates and syrups, including fountain syrups, in the world.

PepsiCo, Inc. is a global snack and beverage company. It manufactures, markets and sells a variety of salty, convenient, sweet and grain-based snacks, carbonated and non-carbonated beverages, and foods.

The comment still stands. If I worked for Pepsi, I'd be upset.

[edited by: martinibuster at 4:30 pm (utc) on Jan. 25, 2006]
[edit reason] TOS #19 [/edit]

1:57 am on Jan 25, 2006 (gmt 0)



BillyS, you have no idea why I responded to your post, so enough with the mindreading already. :-)

Back on topic: The Yahoo CFO's comment wasn't a big deal. Maybe it would have been better if she'd said something like "We don't feel that search is our core mission," or "We've never been a search company, but we're pleased that we now handle X% of the Web's searches in-house instead of outsourcing that task as we did until recently." But in the end, her comment isn't likely to have any more effect on the company's stock, profits, or employee morale than a remark made by Google's CFO just over a year ago in a talk on click fraud: "I think something has to be done about this really, really quickly, because I think, potentially, it threatens our business model." (For those who haven't been watching Google's earnings reports, the AdWords/AdSense program has been doing just fine since that swoon-inducing warning was delivered.)

2:04 am on Jan 25, 2006 (gmt 0)

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Yahoo needs to fire this woman. There are tens of millions of people who are laughing at them today. There's only 1 way to turn that around.
2:12 am on Jan 25, 2006 (gmt 0)

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>As a CFO she is responsible for helping to keep the stock's price as high as possible.

Wrong. In the U.S., she is responsible -- legally responsible, with criminal sanctions backing up that responsibility -- for giving accurate information about the state of the business, to all investors as well as the general public. Oxley-Sorbanes may have made a lot of executives more aware of that responsibility, but it has been there for years. The Enron, Worldcom, and Martha Stewart cases were prosecuted under per-OS laws.

2:29 am on Jan 25, 2006 (gmt 0)

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Algorithmic search has been nothing but a tin can tied to their tails. Every time they turn around someoneís yapping at them about how bad it is. They have never been able to move on from the mind set of having a hand edited directory, where every webmaster was absolutely scared to death to run afoul of them. The move to a true index, based on an algorithm, devoid of hand editing, is something they just have not been able to master, and they donít need to.

This person has simply stated the obvious, plain truth about the whole situation. People are still going to flock to Yahoo, and they will still be a total money making machine. They would probably love to just be able to ditch the whole thing and just go back to having the directory. The results would be a hell of a lot better thatís for sure.

Itís really not a big deal, and their position for pure search, relative to Google is definitely not news. Admitting it yes, but the fact has been, and remains so, and if you really think about it, trying to catch Google is just an unprofitable goal. I think the honesty is totally refreshing and they should get a lot of credit for it. If they put the money they keep investing in an algorithmic search engine, into other things, they would make more money, and the stock holders would be happier.

3:27 am on Jan 25, 2006 (gmt 0)

WebmasterWorld Senior Member steveb is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Some strange sentiments in this thread. When you folks do stuff like buy things for your business does being nothing short of #1 for everything make it a miserable failure? Buying Ink and the rest is just a thing a multi-faceted business does. It's like saying a restaurant is a failure because they introduce a new entree and it isn't as popular as another restaurants entree. All that matters is if the new entree adds value to the business.

If Yahoo were to sell all its search properties for twenty bucks, that would be a failure, but if search contributes a positive return in line with the investments made, there is no problem here from the corporate side. Of course as webmasters we can be disappointed that they don't work harder to make a better engine, but that is a whole different angle.

3:41 am on Jan 25, 2006 (gmt 0)

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While I agree that Yahoo's statement conveys a bad attitude, there's a certain amount of truth to it. The fact is that it's very unlikely that Yahoo will catch up to Google as a search engine. Now that they've stopped trying to beat Google, they should have more energy to focus on improving their services.

And Yahoo does have many areas to improve on in their finance, chat, and YIM technologies. Unfortunately, those services aren't nearly as profitable as search, but they are services that I as a user would hate to lose.

I think that the idea of "improve what we have" is much better for Yahoo than "beat our way to the top".

4:03 am on Jan 25, 2006 (gmt 0)

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Drecker


may become a verb ..as in to "drecker" ones share price , company or employees efforts

Then she should familarize herself with the verb "Lerached".

6:07 am on Jan 25, 2006 (gmt 0)

10+ Year Member




Finally something official the support my theories :)
Given the little IQ in their engine anyway they better forget it....given their latest updates it's better to confirm that they are not going to fight this battle since anyway IMO THEY CAN'T :)
6:11 am on Jan 25, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



They could be preparing people for bad news.

Still, I'd say something like "Growing market share has been increasingly challenging"

Saying we can't do it .. that's like "we're just dumb and can not compete".

7:22 am on Jan 25, 2006 (gmt 0)

WebmasterWorld Senior Member essex_boy is a WebmasterWorld Top Contributor of All Time 10+ Year Member



I just wish theyd drop that silly zany image.

Cant stand it

7:38 am on Jan 25, 2006 (gmt 0)

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>"We don't think it's reasonable to assume we're going to gain a lot of share from Google," Chief Financial Officer Susan Decker said in an interview.

Susan, You Are Fired!

What on earth are you thinking? And what on earth are your more senior members of Management thinking?

This is simply a total meltdown. I don't own any Yahoo shares, but I liked them. If I owned their stock it would have been sold already!

Can you Imagine Gates making this type of comment? Bill, I own a lot of your stock, don't do it! However, I really don't think you will make this kind of mistake!

I really don't know what to make of this! It is such a rookie error that either you have to believe that Yahoo is incompetantant or that their employee's are? Ain't good either way for a company that showed promise!

1:54 pm on Jan 25, 2006 (gmt 0)

10+ Year Member



I see it as a strategical move.

Yahoo announces that it can't catch google.
Yahoo shares drop
Wall Street expectations on Yahoo drop.

Now the expectations are lower.

Yahoo releases annual reports
Yahoo profits up FAR BEYOND wall street expectations
Yahoo shares soar to record highs
Yahoo is back where it is today except with a lot more $$$ because of higher stock prices.

Or then again... they might just be a realistic bunch of people and realise Google is too big to catch
1:56 pm on Jan 25, 2006 (gmt 0)

10+ Year Member



ahh crap. Was writing html just now..... ended up writing it in my post :( I need to go sleep.
2:17 pm on Jan 25, 2006 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Haven't read through whole lot of this as going for a plane...

Could this allow MSN to 'perfect' (yes I agree a little way off) their algo and search and power Yahoo then?

I am pretty sure Yahoo would not go back to Google for results - as their's are pretty pony - they have to do something.

With their close collaboration on the IM side, the two teamed together may truely be a match for G. Alone - no chance right now!

Could prove food for thought.

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