Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

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

By

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

PrintPRINT

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.

2. The Birth of a New Browser

Earlier this year, the company teased the idea of a new browser when it unveiled Yahoo Axis. This browser plug-in used Yahoo technology to power a unique, graphically-rich search box that populated users' browsers with a host of visual results.

Now imagine the possibility of using Axis all on its own. It might be rough around the edges, but many would say that is true of all browsers; they always seem to be a work in progress. By developing their own browsers, however, Google and Microsoft have strengthened their brands. They have also been able to redirect users to their own websites.

Granted, Yahoo would need more than a simple browser to save the company. By developing a faster and superior product, however, users would gradually warm up to the idea of switching. And for every user that switches, the company would inevitably gain a new daily visitor to Yahoo.com.

3. One Key Acquisition

It could be a startup with some key technologies to bolster Yahoo's long-term strategy. It might be a stalwart with dozens of patents and talented employees that will transform Yahoo into an industry behemoth. Or it could be an acquisition that will further enhance the company's mission to become a leader in visual and audio entertainment.

If Yahoo takes the latter direction, expect the company to announce that it is acquiring a major content provider of music or movies/TV, such as Spotify or Hulu. Yahoo has already signed a deal with Spotify that will bring its music streaming technology to Yahoo.com. By acquiring the firm, Yahoo would gain access to the world's largest library of streaming music.


Editor's Note: This content was originally published on Benzinga.com by Louis Bedigian.

Below, find some more great ETF and market content from Benzinga:


Goldman Refutes Earlier Reports, Says 100 Partners Leaving Due to Retirement

If Not GE, Then Who Buys Joy Global?

Twitter: @Benzinga

Benzinga Pro covers this and all market news in real time. Get your free trial here.

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT

Busy? Subscribe to our free newsletter!

Submit
 

WHAT'S POPULAR IN THE VILLE