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Yahoo to Spin Off Its Core Businesses

nytimes.com

61–70 of 300 posts

Re: Yahoo to Spin Off Its Core Businesses

#61
post #59
post #58

The one and only question I need to ask: will flickr stay alive? The rest had been obsolete for a while anyway.

Guessing we are either going to see major changes in pricing structure, or a shutdown of Flickr. Pretty bummed.

Flickr has an immense historical value being the first large photo portal. I'd be devastated to see pictures nowhere else can be found going away :(

Re: Yahoo to Spin Off Its Core Businesses

#62
post #11

So now Yahoo stock is basically going to be a faux Ali Baba stock. This totally seems like a healthy thing and evidence that there is nothing at all wrong with our market system.

This seems like an unprecedented situation. They much set $25,000,000,000 on fire at the same time that they made $29,000,000,000 on a great investment.

A company makes an amazing, generation defining large bet on a startup in a fantastic market. Which pays off as one of the best investments in history.

That same company then proceeds to do _nothing_ with its actual business. It purchases a series of tiny startups that go _absolutely nowhere_, the acquired talent of which create _zero value_.

And, simultaneously, new, younger competitors start eating their lunch in every one of their established markets.

If that's not unprecedented, I'd love to hear the other example. That situation would have to be just as fascinating.

Re: Yahoo to Spin Off Its Core Businesses

#63
post #58

The one and only question I need to ask: will flickr stay alive? The rest had been obsolete for a while anyway.

This can be answered by the question "Is Flickr profitable by itself?" If so, someone will certainly buy it. If not, who knows.

My guess, someone will buy it and it'll languish for a year or two as the product strategy is developed and migration of technology occurs, then the new vision by new owners will be executed.

Re: Yahoo to Spin Off Its Core Businesses

#64
post #59
post #58

The one and only question I need to ask: will flickr stay alive? The rest had been obsolete for a while anyway.

Guessing we are either going to see major changes in pricing structure, or a shutdown of Flickr. Pretty bummed.

Hard to say. There isn't a lot of direct competition. Smugmug probably comes closest (and I see their current pricing structure again makes it reasonable for non-professionals which it wasn't for a time). It really depends on how many people pay for a premium ("pro") flickr account which Yahoo seems to have been fairly ambivalent about collecting over the past few years.

Personally, I'd find it something of a bummer if flickr were to go away or seriously decay. I could switch but it would be a definite pain. (I also find flickr a great source of CC photos.)

Re: Yahoo to Spin Off Its Core Businesses

#65
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?

It may be worth that but as stated in the article it can't be realised without tax bill potentially up to $10bn.

Re: Yahoo to Spin Off Its Core Businesses

#66

Earlier quoted context omitted.

> 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.

That would make any media company a loss-leader for advertising, basically.

Re: Yahoo to Spin Off Its Core Businesses

#67

Earlier quoted context omitted.

"Sadly this probably means 3 things are going to happen in the next 6 months" (Genuine question, not snark). Why "sadly"? Companies, even technical companies, get obsolescent and die all the time. Maybe it is just Yahoo's time to go.

I can't speak for chollida1, but for me as an "older millennial" (28) Yahoo was how I came to discover the internet. Between the chats, instant messenger, search before Google, multiplayer games online with strangers (albeit simple ones like chess and poker), and Geocities it was my first taste of the types of things I do online to this day. I think it's okay to mourn a bit for how we remember the company.

Yes, those yahoo chess ladder rooms burned through a ton of dial up hours at my house.

Re: Yahoo to Spin Off Its Core Businesses

#69
post #18

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.

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…

A cost center doesn't "run at a loss", it performs something critical to supporting the profit center. Advertising is what customers pay for; search makes that advertising worth the price. No search = no advertising. Google's core is "know everything, to maximize advertising revenue". Yahoo's core is...well, it became famous because it provided a curated index to the then-unsearchable Web, but now that's moot and Yahoo is, um, yeah seems that's the problem.

Re: Yahoo to Spin Off Its Core Businesses

#70

Paul Graham's What happened to Yahoo [0] is probably just as relevent now as when he wrote it in 2010. > One of the weirdest things about Yahoo when I went to work there was the way they insisted on calling themselves a "media company. That was a bad decision then, but at the time content and media were newer on the internet and had value. They don't anymore. Yahoo finance and fantasy sports are nice things to provid…

Wish I could find the article I read this in (googling around has failed me), but I believe around 2010 they also started bringing in execs and business people from Hollywood/MSM and there was a big clash of cultures.

The first Hollywood connection surfaced by my quick googling is the Semel arc, 2001-2007:

http://www.cnet.com/news/yahoos-ceo-reaches-out-to-hollywood...

http://www.cnet.com/news/google-vs-yahoo-clash-of-cultures-1...

http://www.wired.com/2007/02/yahoo-3/

http://metue.com/06-18-2007/yahoo-ceo/

The Wired article looks particularly painful. If memory serves, Yahoo first declined to buy proto-Google for one million. Then again in 2002 for 5 billion.

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