Yahoos to Carol: Wait, Why Are We Closing Profitable Businesses Again?

An ex-Yahoo with friends still in the company reached us over the weekend, wanting to know why Yahoo (YHOO) plans to shutter one of its profitable advertising businesses:

A friend just told me Yahoo is shutting down its search submit business at year’s end. 

This is a 100 million annual business with extremely low overhead and one that is LOVED by its users in the advertising community.

Any idea why they would shut it down?

The answer is that Yahoo is trying to shut down, sell, or spin-off lots of businesses these days–even some profitable ones, because new-ish CEO Carol Bartz wants the place to be more focused on its core strategy.


“Not a simple question,” says a source, “[Yahoo doesn’t] need the cash.  But focus is a more valuable (although less tangible) benefit.”

So which businesses are “core”?

Sources tell us:

  • Homepage
  • Mail
  • Messenger
  • Everything mobile
  • Media experiences across sports, news, finance, entertainment

Don’t miss: Yahoo: What’s For Sale, What’s Not, And What Could Be
Photo: timetrax23

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