AOL May Presage the Future Trajectory of Yahoo
July 30, 2009
Larry Dignan reported that AOL revenue slid 24 percent in its second quarter. With a Googler at the helm, will AOL be able to reverse its slide and then get back on the growth highway? Interesting question, but one that I find more intriguing is, “Does the performance of AOL provide a glimpse of Yahoo’s future?” Yahoo has to come to grips with its new role as a clone of AOL. Yahoo and AOL are both portals. Both companies depend on advertising. New services are rushing past AOL and Yahoo. By the time the companies react, the opportunities have shifted. What about a merger of AOL and Yahoo? Whatever angles Yahoo explores, the company has to make some headway in today’s choppy financial waters. Yahoo has a six pack of search systems. Maybe even a case of search systems. Managing these services and pumping up revenues will go a long way to show me that Yahoo is not an AOL.
Stephen Arnold, July 30, 2009
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