Why these firms want to buy Yahoo

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https://www.washingtonpost.com/news/the-switch/wp/2016/04/07/why-these-firms-want-to-buy-yahoo-and-the-antitrust-concerns-they-could-face-if-they-do/

A potential bidding war between corporate titans is brewing over Yahoo, the troubled search engine and media company. Under a widely reported deadline next week for opening bids, companies as diverse as Google, Verizon and Time Inc.  — and a raft of Wall Street buyout firms — may soon find themselves in a dogfight to own one of the biggest digital media properties on the planet, despite its gloomy outlook.

Yahoo’s financial situation is worse than most analysts even knew. The company is projecting steep drops in revenue and earnings for 2016 — more than 15 percent, according to a book of internal figures obtained byRe/code. The documents come just weeks after Yahoo announced it was laying off more than 1,500 employees and a quarterly loss of $4.4 billion. The book containing the detailed numbers is being shown to Yahoo’s potential buyers, and it appears to suggest that a return to growth is not anywhere on the horizon.

In light of such troubles, why would anybody want to buy Yahoo?

The answer comes down to eyeballs and advertising. Despite its declining fortunes, Yahoo is still the third-largest digital media company in the United States, attracting a whopping 202.5 million unique visitors in November, according to the analytics firm comScore. That beats out Wikipedia, ESPN and the Weather Channel. Only Google and Facebook commanded larger audiences.

At that scale, Yahoo is an Internet giant. It draws 84% of its revenue from ads that appear on its main search page on desktop computers, known as search and display advertising. And that makes it a tasty morsel for companies who are either just entering the online advertising space or who believe they can improve upon Yahoo’s formula.

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“The answer comes down to eyeballs and advertising. Despite its declining fortunes, Yahoo is still the third-largest digital media company in the United States, attracting a whopping 202.5 million unique visitors in November, according to the analytics firm comScore. That beats out Wikipedia, ESPN and the Weather Channel. Only Google and Facebook commanded larger audiences.”

and that makes it very, very important..

“At that scale, Yahoo is an Internet giant. It draws 84% of its revenue from ads that appear on its main search page”

who do you think will get it?

im going with facebook..but dont bet on it..🙂

401

~ by seeker401 on April 13, 2016.

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