Today’s financial results from Yahoo were weak and worrisome. The company’s value as a standalone company is spiraling downward, as is its value as an acquisition, strategic or otherwise, and drastic action is required.
Here is a company that, despite market-leading pageviews, managed to lose material ground in both pageviews and corresponding advertising during what will likely turn out to have been the easiest money period in online advertising history, past or future. How will Yahoo do in a more competitive ad market, from a worse pageview platform, and with online ad spending being trimmed in a weakening economy? Considerably worse, anyone but a clinically deranged optimist would think.
The upshot: Any future that looks like Yahoo’s recent operational past is a non-starter.