Live data from Hacker News

Yahoo to Spin Off Its Core Businesses

nytimes.com

41–50 of 300 posts

Re: Yahoo to Spin Off Its Core Businesses

#41

Honest question: what has been Yahoo's core business for the last 15 years?

I would say "portal" which is to connect content creators with content consumers (and charging for space on the portal). Unfortunately for yahoo, this model lost out to social networks. People seem to prefer seeing content from friends over content curated from yahoo. Or they prefer going to sources directly.

Re: Yahoo to Spin Off Its Core Businesses

#42
post #18

Earlier quoted context omitted.

Google's search engine runs at a loss to support their advertising business, and haven't had any serious competition in that sector since they bought Doubleclick (which looks a bit antitrusty in my eyes but what do I know). Yahoo doesn't have much of an ad business so there's not a lot of value in running their own search. They're good at their core business of being a portal, with some parts implemented themselves a…

> Google's search engine runs at a loss to support their advertising business What? I have never heard that AdWords runs at a loss and find it incredibly dubious.

You're misreading what he wrote. It's the ads that bring revenue, and not search. Search is what helps to get people to see relevant ads. Google is not that much in the business of charging people money to provide search services.

Re: Yahoo to Spin Off Its Core Businesses

#43

I never understood farming out their search engine to Bing in the first place. Google literally prints money with their adwords search business. Seems instead of attempting to innovate they just threw in the towel and gave up? I just find it hard to believe that Google is the only way you can run a successful search engine.

Exactly. Yahoo had the largest Hadoop cluster in 2009. They used it for their search engine. They were the driving force and sponsor of Apache projects like Lucene and Hadoop. Then suddenly they outsourced their search engine business to Microsoft Bing. Last time I checked meta search engines like DuckDuckGo rely on Yahoo's BOSS API to access Bing's search engine.

Re: Yahoo to Spin Off Its Core Businesses

#44
post #18

Earlier quoted context omitted.

Google's search engine runs at a loss to support their advertising business, and haven't had any serious competition in that sector since they bought Doubleclick (which looks a bit antitrusty in my eyes but what do I know). Yahoo doesn't have much of an ad business so there's not a lot of value in running their own search. They're good at their core business of being a portal, with some parts implemented themselves a…

> Google's search engine runs at a loss to support their advertising business What? I have never heard that AdWords runs at a loss and find it incredibly dubious.

I think he's saying search itself runs as a loss-leader to get people into their hugely profitable AdWords product. In other words, they spend money in search in order to make money via ads. But yeah. The two go hand in hand, so I'm not sure I'd say search is a loss-leader.

Re: Yahoo to Spin Off Its Core Businesses

#45
post #18

Earlier quoted context omitted.

Google's search engine runs at a loss to support their advertising business, and haven't had any serious competition in that sector since they bought Doubleclick (which looks a bit antitrusty in my eyes but what do I know). Yahoo doesn't have much of an ad business so there's not a lot of value in running their own search. They're good at their core business of being a portal, with some parts implemented themselves a…

That's perhaps the most twisted/obtuse definition of "running at a loss". Without their search engine, there is no advertising business.

Yes there is. A lot of Google's advertising business is selling ads on other people's sites, and they use the information from their search engine to target that; they could run the ad business without it (using data from Google Analytics and elsewhere) - after all it ran as an independent business when Doubleclick owned it.

My understanding is that if search and ads were separate businesses and ads paid search for search result ads at market rates then search would not be profitable (similarly for e.g. Gmail). (In reality if search were an independent company then it might be able to be profitable by selling information to ads in addition to direct advertising revenue - OTOH the legal barriers to selling information to a third party might make that impractical, whereas conveniently they're not an issue while Google remains a single company)

Re: Yahoo to Spin Off Its Core Businesses

#46

Oh just give this poor old dog the old Yeller treatment already. I don't know what's more sad, the fact that Yahoo has fallen from where it once was, or that it's falling so slowly and that it's new CEO, once thought to be it's saving grace, is letting the bleeding continue for seemingly as long as she possibly can. I can't imagine the morale issues in the trenches of Yahoo, it's gotta be just horrible in there.

I thought I read somewhere that this is a slow bleed, to allow investors more direct access to alibaba, at the expense of the rest of Yahoo!'s businesses?

Re: Yahoo to Spin Off Its Core Businesses

#47

Oh just give this poor old dog the old Yeller treatment already. I don't know what's more sad, the fact that Yahoo has fallen from where it once was, or that it's falling so slowly and that it's new CEO, once thought to be it's saving grace, is letting the bleeding continue for seemingly as long as she possibly can. I can't imagine the morale issues in the trenches of Yahoo, it's gotta be just horrible in there.

As a sidebar, I've always kinda felt the name gets in the way. Yahoo! I feel silly saying it. I feel silly asking someone if they Yahoo!? It feels silly seeing it on stock tickers. Do I want to invest in a silly business? Work for a silly business? The answers are yes and yes in an objective world, if the company is producing interesting products that are selling. But when it comes to marketing to users, investors an…

[deleted]

Re: Yahoo to Spin Off Its Core Businesses

#48

Oh just give this poor old dog the old Yeller treatment already. I don't know what's more sad, the fact that Yahoo has fallen from where it once was, or that it's falling so slowly and that it's new CEO, once thought to be it's saving grace, is letting the bleeding continue for seemingly as long as she possibly can. I can't imagine the morale issues in the trenches of Yahoo, it's gotta be just horrible in there.

As a sidebar, I've always kinda felt the name gets in the way. Yahoo! I feel silly saying it. I feel silly asking someone if they Yahoo!? It feels silly seeing it on stock tickers. Do I want to invest in a silly business? Work for a silly business? The answers are yes and yes in an objective world, if the company is producing interesting products that are selling. But when it comes to marketing to users, investors an…

>Yahoo! I feel silly saying it. I feel silly asking someone if they Yahoo!?

Yeah, nothing like the gravitas and seriousness of Google.

Re: Yahoo to Spin Off Its Core Businesses

#49

Earlier quoted context omitted.

As a sidebar, I've always kinda felt the name gets in the way. Yahoo! I feel silly saying it. I feel silly asking someone if they Yahoo!? It feels silly seeing it on stock tickers. Do I want to invest in a silly business? Work for a silly business? The answers are yes and yes in an objective world, if the company is producing interesting products that are selling. But when it comes to marketing to users, investors an…

As opposed to Google, which has a super staid and boring name.

At least Google doesn't have a sound bite of yodelling.

Re: Yahoo to Spin Off Its Core Businesses

#50
post #33

I'm not sure I quite understand. The article puts Yahoo's Alibaba stake at 31bn. Google finance is reporting Yahoo's market cap as 32.75bn. Does this mean that Yahoo's non-Alibaba value is a rounding error?

You're forgetting Yahoo Japan, a separate company that Yahoo owns a stake in. According to the numbers, Yahoo's core Internet businesses have been worth less than zero.

http://www.bloombergview.com/articles/2014-04-17/how-can-yah...

Post reply on HN