In an attempt to revamp itself, Yahoo! Inc. (NASDAQ:YHOO) recently announced its introduction into broadcast television.
Yahoo! Connected TV is the latest technologically-driven, all-in-one devices to hit the consumer market. This Internet-enhanced television will feature broadcast interactivity, mobile device connectivity, and TV apps. “The new feature is slated to launch with select national broadcast and cable TV leaders and top brand advertisers. Yahoo! is collaborating with ABC, CBS, HSN, and Showtime on content for a pilot program in the first half of 2011…,” announced in a Yahoo press statement.
Yahoo is also disbanding several of its online features like flickr, delicious, zimbra, a corporate email and calendar software provider, and its job database, hotjobs, in efforts to simplify the company’s new direction.
This move could signal a new rebirth for the search engine provider who has not had much success (in terms of stock value) since 2000. Yahoo faced major competition with the launch of Google and they have not been able to retain their once highly touted social/internet status. But, loyal Yahoo investors remain optimistic.
At present, Yahoo has had a steady trend in market share at 21.91B (Google dominates the market at 199.60B) while holding a 52-week stock price range of 12.94-19.12. Net Income for 2009 was 597.99M up from 418.92M for 2008. Total net income profit margin was 9.25 percent for 2009 up from a 5.81 percent total profit margin. Its 2010 figures will be released January 25, 2011.
Since the 2008/2009 changes to Yahoo’s top management, the company has restructured its core focus several times: from “offering services to manage personal matters” to improving its core display-advertising business to now, focusing attention to broadcast media. With that said, streamlining operations seems to be the key issue for the company- which only represents an 11 percent operation margin (even AOL operates at a margin of 17 percent).
Shareholders seem positive about new CEO, Carol Bartz- appointed in January 2009- but because of lack of internet experience, the verdict is still out. Nonetheless, Yahoo shares have risen 20 percent since her take over and the company is making some improvements. For example, PCWorld Magazine was happy – thrilled even- about a new news and entertainment search feature developed with partner Microsoft mid-2010. The feature uses Microsoft’s Bing search engine to power Yahoo’s search results.
Although the company is struggling to regain, they are making some strides-slight, but a stride nonetheless. Investor confidence, however, remain in tack; mainly due to web-wide discussions on financial message boards. A recent article by Dan Caplinger of The Motley Fool, reported on Morningstar’s top-rated fund managers announcing that one in particular has Yahoo in its portfolio. However, many readers have skimmed over the fact that the portfolio in question and Yahoo, as it relates, pertains to the emerging international market.
Regardless; for Yahoo, all is not lost. Thanks to brand recognition and being the number two search engine, the company’s reorganization won’t be problematic. And as further indication they’re moving in the right direction, it was announced yesterday that Yahoo ranks 94 out of the top 500 S&P stocks with the most changed in short term (monthly basis) interest and ranks as one of the most actively-traded U.S. stocks and ETFs.
- Yahoo Connected TV Review: It’s Pretty Cool (searchenginewatch.com)
- CES Video: Yahoo! Connected TV to Provide “Broadcast Interactivity” (beet.tv)