Monday, July 25, 2016

End of the journey or departure for Yahoo! ‘- The Express

An agreement announced Monday provides that the telecom giant Verizon resume media platforms and online advertising in the US internet group for $ 4.8 billion, a fraction of the 125 billion market capitalization posted by Yahoo! in its glory.

The group will certainly disappear as an independent entity, but the brand will probably survive and maybe even grow under the umbrella of its new owner, analysts say.

Call it a new beginning for Yahoo! ” suggests Shar VanBoskirk, a Forrester analyst. “ I do not expect that Verizon abandons Yahoo !, mark they will probably keep the name of Yahoo! on many of his great media sites.

If Yahoo ! successfully created on all of its sites (Yahoo! News, Yahoo! Mail, Yahoo! Finance …) a global audience of one billion visitors per month, “ it was not able to change and adjust its mark when the market changed , “said the analyst.

It might be good for them to think differently about what it means to be Yahoo! “, and to use their brand as a platform for “ may go further than they have done over the past five years , “she argued.

– Synergies –

Verizon plans to manage the activities acquired from Yahoo via AOL, another fallen star of the internet it has also recently acquired and has maintained a semi-autonomous management under the leadership of Tim Armstrong.

The transaction has also been presented as a source of synergies: Verizon is trying to expand beyond its traditional business of telecom operator, while Yahoo! needs help stem its decline against other internet groups such as Google or Facebook. Some observers have nevertheless questioned whether well together two former glories Internet could be enough to bring them to the foreground.

Yahoo was struggling to meet the expectations of investors every quarter “, however, said Greg Sterling, the specialized site Search Engine Land. “ Maybe this will help them to have a longer-term vision .”

He said generally optimistic for the operation, provided that Verizon Yahoo! to ensure sufficient flexibility and investment.

The boss of Yahoo !, Marissa Mayer, reported at a press conference a “ important strategic alignment on Verizon’s focus on information Yahoo! the connection and the entertainment of our users . ”

Yahoo! “ changed the world, and continue to do so through its merger with Verizon and AOL ,” she said.

– Culture shock –

The transaction will also test the ability of both groups to the stories and cultures as different to find a way to prosper together.

Yahoo! is from the culture of innovation and freedom of Silicon Valley, while Verizon’s roots are those of an East Coast telecom company subject to numerous regulations.

They may be as far apart as two companies can be ,” notes Roger Kay, analyst at Endpoint Technologies Associates. Verizon “ is a company that is not innovative, very different from the world-oriented software ” including Yahoo !. comes

The culture (…) is perhaps the key issue “, as Judge Greg Sterling. “ Verizon will be the parent company and exercise control, but they need to create opportunities for innovation and not to impose a culture that employees from “, he warns.

However, it recalls with established groups like Disney, seem to have managed to successfully integrate small business without stifling their creativity.

For him, “ it is possible for Verizon to exercise supervision while giving his new industry sufficient autonomy to do things that attract talent and be creative “.

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