James Perrin

Yahoo’s ‘Sunset’ Sale Begins

18th Mar 2011 News, Industry News 2 minutes to read

Yahoo logoAs part of an ongoing attempt to streamline Yahoo, reports suggest they are on the verge of selling Delicious believed to be around $1 Million.

The bookmarking service, Delicious, was purchased by Yahoo in 2005 for a reported $30 million. Six years later, they are believed to be offloading this property for as little as $1million (£600,000 approximately) as they look to sell the unprofitable assets of the company.

As part of the review of Yahoo, chief executive Carol Bartz has taken the decision for the internet company to focus primarily on content creation [See: Yahoo Increasingly Looking to Content to Fill Search Void]. They believe this is a far more profitable way to sell advertising, as opposed to Delicious which isn’t possible to monetise.

It is believed that StumbleUpon, who offer a similar bookmarking service, are willing to stump up with the $1 Million to take Delicious off Yahoo’s hands. The bookmarking service’s time under Yahoo’s watch hasn’t exactly been joyous. Three years after purchase, Delicious’ founder Joshua Schachter left complaining he was being “sidelined by the decisions of my management”, just one example of one of the many perceived failings aimed at Yahoo. Part of these failings include the many botched investments choices in which The Wall sum up perfectly with this infographic.

Yahoo’s track record when it comes to investment choices hasn’t exactly been astounding, with a so called ‘sunset’ list being created to streamline the company and focus on content. A leaked screenshot revealed that Yahoo are considering setting the sun on services [including Delicious] such as AltaVista, Yahoo Buzz, Yahoo Picks, Yahoo Bookmarks and MyBlogLog.

In addition to their poor investment choices, their subsequent luck hasn’t been great either. Take the news story of Yahoo selling their shares in Yahoo Japan for example [See: Yahoo Set to Say Sayonara to Japanese Unit]. A sale was rumoured as Yahoo looked to refocus their attentions to the emerging Chinese markets. However the tragic recent events in Japan have seriously hampered any sale, as Yahoo Japan’s stock started to decline.

Yahoo has lost so much ground to other search engines, notably Google and the emerging Bing, and they are really facing some sort of an identity crisis in the long run.  The fire sale looks set to continue, but investments may also be on the horizon (as was indicated by their recent bid for Groupon). Whether the game is finally up for the ailing dotcom era search engine remains to be seen, but whatever does happen, they’re certainly not going down quietly.

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