13 February 2008 | Team Tamar

Yahoo! in trouble?

Are Yahoo! making a comeback?

YahooglassyAs I was surfing the interweb this morning I found some interesting developments regarding “struggling” Yahoo! In the past week there has been a lot of news surrounding the Yahoo! and Microsoft saga. This was intended to be a follow up post, but what I found instead was some clarification as to why Yahoo! rejected Microsoft’s bid.

Firstly, mobile service provider, T-Mobile, announced yesterday that it will replace Google with Yahoo! as its preferred search provider for users in Europe. This is a very decisive blow for Yahoo! that is competing with MSN and Google to try and dominate the, admittedly very new and open, mobile search market.
When T-Mobile signed with Google it made quite a splash in the search world because it was one of the first major partnerships between a search engine and a mobile service provider.

An analyst from Ovum, John Delaney wrote: "Well done Yahoo for knocking Google off the Web n Walk home page." Web n Walk is T-Mobile’s mobile Internet offering.
The new service from Yahoo! will be available for T-Mobile users across 11 European countries in March. Users will also have access to other Yahoo! services ranging from Flickr, Messenger, Mail and Weather to Finance.

In all Yahoo! now has 29 service providers supplying their mobile customers with oneSearch (Yahoo’s mobile search offering.) That already indicates to me that Yahoo! have a foot hole in the market, but simply needs to expand it and the next section of my post does just that.
The second, and final, reason I believe Yahoo! to be just fine is that they bought the video service Maven Networks Inc. yesterday for £80 million.

With this acquisition Yahoo! is proving that it is still growing and trying to expand its online advertising network.
Even though these two new developments have strengthened Yahoo’s position, many analysts still believe that Yahoo! will ultimately become a part of Microsoft.

Yahoo! has made some changes early in 2008 in an attempt to turn around their ship. We shall have to wait and see how it all plays out, but at the moment Yahoo!, in my opinion, is doing just fine.

Team Tamar