Mark Cuban: What Yahoo! should do

Mark Cuban sez: “Rather than determining a strategy of profitability and growth, from
my outsiders viewpoint, large shareholders and directors of Yahoo have
become the “HuggyBear Contingent”. Just a group trying to dress up
Yahoo in order to pimp it out to any bidder it can find.

Big Mistake.  Yahoo should be taking the exact opposite approach.

Yahoo has a very simple business. Generate traffic and monetize it.
It generates traffic through services and content. It sells advertising
around them both. Their strategy should be to acquire every and any
company that makes their traffic, services, content or monetization
stronger.”

Mark’s conclusion: “Yahoo should be on the warpath, vetting each and every media (yes
media) and technology company it can sit down with looking for bargains
.”

Susan sez: This is a very good strategy and a good suggestion. Problem is Yahoo! needs executives–and engineering leadership–who can a) make decisions on what to acquire and b) actually use the acquisition. Unfortunately, Yahoo!, like many big companies, has a history of acquiring companies and then not taking good advantage of the audience, product or IP they bring. Once Yahoo! has some new leadership in place–and resigns itself that putting 800 engineers on one project may not always be the saving grace some people thought it was–this strategy is a perfectly valid way to go, especially if they are prepared to bring in additional people to manage to this approach.