Given the damage we Yahoo shareholders have sustained over the past couple of years, I hope this won't be viewed as gloating. I am cautiously optimistic, however, that John Battelle's prediction last month that Wired's "How-Pathetic-Is-Yahoo" story was, in fact, the bottom.
Anecdotal reports of a nice reception to Panama continue to come in, and it does seem as though, having been shamed into action, Yahoo is once again innovating. This doesn't change the fact that Yahoo is now running a distant second in a race it used to have all-but-won (global web dominance). When combined with the possibility of Panama-inspired revenue acceleration (and, perhaps, margin expansion) over the next several quarters, however, it does suggest that Yahoo shareholders might look back on 2007 as a pretty good year. (Especially relative to Google shareholders, who have now been essentially stuck in the mud for going on 5 quarters.)
Many challenges remain. First and foremost the management purgatory (Who's going to run the "Audience" division and is he/she going to have designs on the CEO spot? If not, is he/she really going to be that strong a hire?). And, second, the need to make the brand cool again. But, overall, I'm cautiously optimistic that perhaps Terry will retire on a high note, after all.
Seems like this Belgian court thing against google could be a pretty big deal, especially if other european countries follow suit.
Posted by: Victor | February 14, 2007 at 11:16 AM
Cautious optimism is called for, but as a shareholder calls holder I'm trying to remain wildly optimistic.
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