AOL Ad Sales Confusion Is A Boon For Yahoo

chaos moshing mosh

AOL ad sales are in quiet chaos thanks to January layoffs and a subsequent re-org that CFO Artie Minson says resulted in 80% of accounts switching hands.

Analyst Douglas Anmuth of Barcalys Capital says this situation — bad news for AOL — is one of four reasons to bet on Yahoo, even as it cedes search share to Microsoft.

It’s one of four explanations Douglas gives for writing, in his latest note that, “risk/reward on Yahoo is favourable at current levels.” He gives three other reasons too:

  • Better pricing and industry pick-up should make up for Yahoo’s loss in search share.
  • The Microsoft serach partnership will allow Yahoo to cut 400 jobs. More reductions are likely. This will improve Q1 EBITDA.
  • Yahoo bought back $210 million worth of its Asian assets. They are now worth the last $5.66 of every Yahoo share.

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