In an open letter to new Yahoo CEO Carol Bartz, Piper Jaffray Analyst Gene Munster outlined a four-part plan turning around the company. As paraphrased by Tech Trader Daily:
- Outsource search to Microsoft. “Search has never been a core competency for Yahoo, and outsourcing will both generate shot-term cash and allow Yahoo to focus on content.”
- Acquire a major print news company with global scale and stature in addition to a blog network experienced in creating short content to generate significant page views. In particular, he says that the New York Times (NYT) and Gawker Media would fit this profile. “These content acquisitions would allow Yahoo to own and distribute a collection of the best content on the Web in addition to generating short-form content to maximise page views and stickiness.”
- Acquire micro-blogging and social feed aggregation technology companies, like Twitter or FriendFeed. “The goal of these social broadcasting acquisitions is to help users share and create Yahoo content.”
- Focus on producing and sharing the best content on the Web.
We asked Gawker Media owner Nick Denton what he thought of the idea. “Sounds like a polygamous marriage made in hell,” he said. Snarky!
(But also true.)
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