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Three Things Marissa Mayer Could Unveil to Save Yahoo (NASDAQ:YHOO)


The new Yahoo CEO is expected to announce her plans for the struggling company this week. Here are some steps she could take.


Yahoo (NASDAQ:YHOO) CEO Marissa Mayer is expected to publicly announce her plans to turn her firm into a profitable entity this week. While the details of her internal memo (leaked by AllThingsD) did not reveal what she will announce, there is a good chance that it will involve one or more of the following things that could save Yahoo.

1. New Partnerships and an Entirely Revamped Search Engine

Several months ago, Yahoo was rumored to be dumping Bing, Microsoft's (NASDAQ:MSFT) growing search engine, for Google (NASDAQ:GOOG). Nothing ever came of that rumor, so it seems unlikely that Yahoo will surprise the world by announcing that it will switch to Google tomorrow.

Yahoo might, however, be inspired to drop Bing and other search engines altogether and do what it should have done all along: Develop a fresh engine from the ground up. In doing so, Yahoo would gain control of its company again. It would be able to dictate its search functionality and maximize its capability without having to rely on another party's technology.

More importantly, it would give Yahoo the ability to sign massive, revenue-driving partnerships like the one that Google announced late last year. Google will pay Mozilla $300 million per year for three years to maintain its status as the default search engine in Firefox. By spending millions today, Google will make billions tomorrow. Yahoo could soon be in a position to do the same.

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No positions in stocks mentioned.

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