Yahoo is struggling to keep up with the current Web trend. Carol may sound more optimistic in the above video, but the latest news suggests that Yahoo is planning to cut 5% of workforce. Nevertheless, she does has a point about the Microsoft-Yahoo search deal. The ten year deal allows Bing to power Yahoo search and allows Yahoo to keep 88% of the search ad revenue. Microsoft gets remaining revenue and gains access to the user info and preferences thereby helping in more targeted ads. This might add additional $500 million revenue for Yahoo.
But this still is not enough to stop the other businesses from faltering. Before the Y2K boom Yahoo was the trendy web and search company attracting most of web traffic. Its failure to innovate in search and missing the Social Networking wave has cost it dearly. I am afraid Yahoo shouldn’t become the next Sun Microsystems or Novell.