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Is Yahoo a fit for Microsoft?. Sarah Stottsberry Connie Skomra Phil Laube. Overview. Should Microsoft buy Yahoo? Why? What is the future of computing? What about Yahoo? – what do they bring? MS has what they need already to meet the future. Future of computing.
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Is Yahoo a fit for Microsoft? Sarah Stottsberry Connie Skomra Phil Laube
Overview • Should Microsoft buy Yahoo? • Why? • What is the future of computing? • What about Yahoo? – what do they bring? • MS has what they need already to meet the future
Future of computing • Movement from “PC” to small devices – everything is a device • Less tapping – interface differently • Quantum leap – every aspect • “Habitative computing”
Future of computing • What’s at the base? • Information • People can’t use information if they can’t find it Search is what brings the information to the consumer
New World of searching • Devices searching without prompt (object level search) • Information will find the user • Highly accurate / more relevant results
Search & advertising:Matches businesses to end users Cost: free Cost: $$ Matching customers to businesses: Priceless
Getting to the future RELEVANCY
What does Yahoo bring? Web search #1 in users 500 million users 88 million home page visits(source: Yahoo! Corporate Overview August 2007) Ad Services Does it add to MS? MSN But Not #1 in search Brand loyalty? MS has that too Can Yahoo get MS to the future?
Yahoo search doesn’t add value • Page level search engine like MSN • Searching text strings • Results (relevancy) is not any better
Yahoo has a lot of users, but it’s not the search market • Google gets most searches now • With existing search technology • Yahoo (and MSN) now have the same, but too late • A better search can win them all
Panama • Yahoo’s ad ranking engine • Determines what ads show up in an end user’s search • Spent a lot of time and development $$ • Released 1Q 2007 • Hasn’t been the home run that was anticipated • Revenue is not up substantially • Did not exceed it’s target - Google • MSN’s AdCenter = Panama + demographic filtering
Other ad services • Yahoo does offer other ad services that MS was lacking • Statistical tools • Consulting • Publishing wizards • Among others • Purchase of aQuantive in May, 2007 filled this gap
MS Business Model • Steve Ballmer, CEO • Stated vision • “Help people reach their potential” • Innovation – passion for technology • Reality – innovation in a way • Take existing technology • Repackage it • Enhance it • Build it into a platform • Make it all more accessible & relevant
Summary “I skate to where the puck is going to be, not where it has been.” -Wayne Gretzky • Yahoo offers current technology at an expensive price ($32 B market cap.) • MS has and can develop what is needed for the future without spending the money for Yahoo!