Wednesday, 7 September 2011

The writing is on the wall for all of us

A sign marks the entrance to the headquarters of Yahoo! Inc. in Sunnyvale, California, U.SOnce the leader in web presence Yahoo! collapse along with the fall of MySpace is a stark reminder that in the Cloud business moves very fast.
"When the history of the internet industry comes to be written, Yahoo! will deserve a special place in it for all the wrong reasons. Rarely has a company managed to destroy so much shareholder value in such a short space of time. Before Ms Bartz was brought in to run the business, Yahoo! rejected a bid from Microsoft that valued it at around $45 billion on the ground that the offer was too stingy. Today, its market capitalisation is a mere $16 billion or so."

Yahoo! just fired CEO Carol Bartz and it seems the only reason the story is out is the way it was leaked via email. The way the world learned that Yahoo! would have a new CEO was more of the story then the fact that the struggling firm was in even more trouble.

Today Yahoo! is worth $30 Billion dollar less then what Microsoft offered for it a few years ago. In the past 5 or so years Yahoo! has last around $100 of value for every man, woman and child in the United States.

This is despite about 7 billion page views a day. That is a page view of every man, woman and child on Earth. Yahoo! is still one of the most visited domains in the Universe. But in the Cloud you can't just convert eyeballs in to dollars in any direct way like you can on TV with advertising. Yahoo! has failed despite being for the most part rather popular.

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