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Sunday, July 26, 2009

It’s Time: Yahoo! Revenue Still Struggling, Serious Merger Talks Needed

Posted by @ 7:07 pm

The dramas at Yahoo! just seem to be going from bad to worse! Second quarter earnings for the company just released show their total revenue dropped 13% to just 1.5 billion.

When you compare this to Google, whose total revenues actually rose 3%, this is not good news for Yahoo!

Add to this the news that Microsoft merger talks are back on, with Microsoft in a much stronger position courtesy of Bing, and then things look disastrous for Yahoo!

Of interest to us was Yahoo!’s search advertising revenues on Yahoo!-owned sites which declined by 15%, while display advertising decreased by 14%. Seems advertising just isn’t working for them!

Here is a breakdown of Yahoo!’s 2nd quarter revenue:


Even though things aren’t looking great for Yahoo!, their CEO Carol Bartz was full of praise for the company and the results they posted.

I’m pleased with our results this past quarter. We established a clear, simple vision to be the center of people’s lives online, and we’re backing that vision with important initiatives to create ‘wow’ experiences for our users.

She even went so far as to praise the newly launched Microsoft search engine, Bing:

I actually think Bing is a good product. I think they’ve done a good job, but unfortunately they are only a month into it. I think Microsoft should be given kudos for Bing.

Judging by these recent earnings figures, do you think Yahoo!’s best option would be to take a deal with Microsoft? Feel free to share your thoughts below.

Courtney Mills Courtney is an online marketing and communications specialist at ineedhits - a leading search engine marketing firm with over 16 years experience. Courtney has been living and breathing online marketing for over 5 years. She specializes in web and communication marketing, while providing news and opinion to online marketing communities.

View Courtney Mills's profile

Discussion (1 - comment)

If you look at the dynamics of merchant cost VS services in return the Yahoo! Merchant accounts are not working out for those of us the pay the $39 + per month for minimal services. On the other hand my FX Domains accounts give much more services for half the price, and Website editing and templates are great. having 11 domains of which 4 are ECommerce you can see how this all adds up to many online merchants moving away from Yahoo. Interestingly enough my site ranks higher on Google than Yahoo search engine and I don’t pay Google for marketing placement at all.

If Yahoo wants to get serious about being competitive against Google and making money, They need to fix the big issues the small business owners out here are having to deal with. Lets not forget the current issue some of us are having with the new mail layout and not being able to retrieve mail unless we go through and switch back to classic mail layout.

I hope they get there act together before they become a footnote in Internet history.

Gary Aber
Panjsher Gems International

By Panjsher Gems International - July 27, 2009

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