Blogging News

When we last left Yahoo!, Jerry Yang (CEO) and the rest of the board had just spurned Microsoft’s $44.6 billion takeover bid for the supposedly greener pastures of potential deals with AOL, News Corporation, and/or Google. The rejection of Microsoft’s bid also put the current board on a collision course with Carl Icahn in what looked to be a battle for control of Yahoo!’s board of directors.

Trials and Tribulations

After spending millions to buy 68.7 million shares of Yahoo!, Icahn was set to nominate his own slate of directors for Yahoo’s board at the company’s annual shareholder meeting. Icahn would use Yahoo! shareholders’ fury over the botched Microsoft deal to win votes for his board nominees and take over Yahoo!’s board. Yahoo! made a preemptive strike however and managed to appease Icahn by granting him three seats on Yahoo!’s board of directors in July. But what of the purported deals with AOL, News Corp, and Google?

Well, to date, the AOL and News Corp deals never materialized, at least publicly. However, Google and Yahoo! agreed to a partnership whereby Google would deliver ads on Yahoo!’s network. The kicker in the deal was that Google would pay Yahoo! more than Yahoo! could make with its own ads, meaning Google was essentially buying market share from Yahoo!.

This deal would be investigated by the U.S. Justice Department and opposed by Microsoft and online advertisers, who were arguing that the deal would be anticompetitive and result in higher ad prices. In the end, Google and Yahoo! were unable to appease Justice Department investigators by offering to cap the number of ads that would be displayed on Yahoo!’s network and Google walked away from the deal rather than fight a lengthy legal battle.

Just before Google walked away from the deal, Yahoo! reported 3rd quarter earnings. Operating income decreased 53% and revenues were virtually flat compared to the same quarter in 2007. In addition, Yahoo! announced it was laying off 1,500 employees as part of its efforts to cut costs. All told, the Microsoft bid, Icahn ordeal, and proposed Google partnership cost Yahoo! $73 million in fees for outside advisors according to a filing with the SEC.

In the wake of this double-whammy, Yahoo’s stock tumbled to around $10 per share from its 52-week high of $30.25, which it reached when Microsoft was attempting to acquire the company. Yahoo’s share of the search market also continued to decline, falling to 20% in September compared to 22.9% a year ago, according to comScore. What is Yahoo! to do? In a word, grovel.

“To this day, I believe the best thing for Microsoft to do is to buy Yahoo,” Yang said at the Web 2.0 summit in San Francisco, the Associated Press reports.

Still?!

To which Microsoft CEO Steve Ballmer replied, “We made an offer, we made another offer, and it was clear that Yahoo didn’t want to sell the business to us and we moved on. We are not interested in going back and re-looking at an acquisition. I don’t know why they would be either, frankly. They turned us down at $33 a share.”

Could Ballmer be using his public comments to further drive down the value of Yahoo!’s stock before making another bid? Or is he stating his actual beliefs on the matter and only interested in “some kind of partnership around search?” Only time will tell, but it certainly seems like Microsoft is moving forward with new strategies for challenging Google.

Microsoft Moves On

Several of these strategies include new or extended partnerships. One such extended partnership is with long-standing Microsoft partner Hewlett-Packard, where Microsoft will install its Live Search toolbar on all HP computers in North America starting in January 2009.

Microsoft is also negotiating with Verizon to become the default search provider on the company’s cell phones, according to the Wall Street Journal. Though the terms of the deal are still being discussed, early indications are that the two companies would share ad revenue generated from web searches made on Verizon cell phones.

Yahoo!’s Future

What does Yahoo! do to secure its future as a viable Internet property going forward? Well, it’s changing leaders for one. In mid-November, Yahoo! announced Yang would be returning to his post as Chief Yahoo! as soon as the company found a new CEO. In addition, over the last few months, Yahoo! has rolled out a number of initiatives, releasing its own analytics package (similar to Google Analytics), updating the design of Yahoo! News, launching the APT (formerly AMP!) digital advertising platform, and announcing the Yahoo! Open Strategy, which aims to make Yahoo! programs open source.

While the change in leadership and these initiatives seem like steps in the right direction, we believe Yahoo! will need to pick a new CEO that brings fresh strategic ideas to the table and the company will need to develop significant proprietary innovations in search technology that convince users to switch back to Yahoo! for web searches. Yahoo! will probably need partners in this turnaround effort too. Microsoft is open to a partnership and combining search algorithm, mail, and instant messenger research efforts would save both companies substantial amounts of money. Such a partnership could also make Yahoo! the default search provider in Internet Explorer, Office, and other Microsoft software products and web properties. Whatever course Yahoo! chooses, hopefully it won’t be too little, too late.

(C) Medium Blue 2008

Leila Davies asked:


Seeing as how Twitter is becoming more and more popular amongst businesses (even Walmart uses it!) we have decided to give you a quick over view of some Twitter best practises.

 

Top 10 Twitter Tips:

 

1)    Make objectives about what you want to achieve by using Twitter, and stick to them. You need to know what you want to achieve with Twitter. If there are too many things, create more than one account – each one should have its own agenda and credibility. Think about your user name. If you want to build up awareness for your own name brand, use your name, but if you want to build up your company name, you could try a mix of your name and the company name or just the company – depending on the length of your company name. E.G Leila_Interleado. You don’t want to use a name like superstar69 because it gives absolutely nothing away about you or your company and it doesn’t inspire any kind of credibility.

 

2)    When you add your avatar try not to add a picture of you wearing a giant silly hat, or you sitting in a boardroom. You want to be a human as well as professional. You also want to inspire confidence in your business capabilities and not look like a joker. Keep it simply you -and enforce your brand (whether it’s a personal brand, company brand, or your voice in the company brand).

 

3)    Add your URL and a small bio to your profile. People will have an online reference to learn about what you are offering them or what else there is to learn about you. Your profile reflects your brand.

 

4)    Twitter is like micro blogging. Your messages have a limit of 140 characters. Make them count.

 

5)    Twitter is no longer there just to tell people that your dog had 5 adorable puppies and you have decided to name them all Bob and Trudy. Now is the time to use Twitter to tell people about your business goals, your professional interests, to spread knowledge and offer customer support. Use your own ideas to spread the messages – be unique!

 

6)    That said, by no means is it deemed acceptable to spam your followers with “Tweets”* only concerning your company and how great it is. This is a sure fire way to either lose follower or not gain any. Add a human touch by passing on the link to an article you found funny or interesting. Tweet about issues you have online, things you found on your way to work, ask questions and reply to what other “Twits (or Tweeps)”** say. Offer customer support for example. Be useful but keep a balance.

 

7)    Add followers who you think you can learn from.  Hopefully they will think the same of you and follow you in return. It’s about building up a network here, the more useful all the connections are the better for you and everyone who networks with you. This means not automatically following people who follow you too. Depending on what you want to achieve, it seems logical that you would only follow people who have things to say that you find useful or interesting in any way. This is a chance to gain new blog readers, newsletter subscribers or software users. Again, this depends on what you want to achieve with Twitter.

 

8)    If you like what one of your followers  contributed, say so! By “Retweeting”*** what one of your followers or someone you are following says, you let them know that you found what they said interesting and that you are willing to share it with others . You could also reply to them or send a direct message and let them know. To retweet something, users typically type in “Retweeting” and the user name with an @ in front of it to show who posted it originally e.g. “Retweeting @LeilaPan” then paste the Tweet here. To reply to someone you type in the user name with an @ before it e.g. “@LeilaPan nice article!”. Users can be notified when they get these replies so they will know you replied to them or retweeted their message and may be more inclined to return the favour. Try to keep  a balance though, people can see when you are Tweeting your own messages or when you are replying or Retweeting – make sure you have your own voice.

 

9)    Use Twitter regularly. The more you use it, the more interaction people see. The more use people see in following you and the more followers you will receive!

 

10)    Twitter can give you insight you may not have had before. It can form part of your online reputation management. Track what people say about you or your company, or both! See if people are Tweeting your articles. By responding to what people say about your brand you build up your network and credibility.

 

Of course there are many Twitter tools and resources out there to help you use the application as best you can. It’s all about using it and finding out what works for you. You might also want to brush up on your Twitter lingo (you could even make up your own Twords! Twitter words…that one’s all mine.) Twittering can be fun, and keeps the communication lines with your target audience wide open.

 

The most important thing to remember is that this takes time, but it is becoming more and more widely accepted as a way to interact with existing and potential customers or even your niche heroes.

 

If you would like to follow some Interleado employees, you can follow me or Interleado’s CEO, Peter Cullen.

 

*Twitter posts

 

**Twitter users

 

***Reposting a Tweet



Create a video blog…instantly.