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Ask Slashdot: Can Yahoo Actually Stage a Comeback?

Nerval's Lobster writes "Fresh off purchasing Tumblr for $1.1 billion, Yahoo has moved to the next stage of what's becoming a company-wide reboot: fixing Flickr, the photo-sharing service that it acquired in 2005 and subsequently allowed to languish. Yahoo boosted Flickr accounts' individual storage capacity to one free terabyte, revamped the Website's overall look, and launched a new Flickr app for Google Android, among other tweaks. Yahoo CEO Marissa Mayer clearly wants her company to fight toe-to-toe on features with Google and Facebook, but she faces a long road ahead of her: not only does she need to streamline Yahoo's cumbersome corporate structure and product portfolio into something that resembles fighting shape, but she needs to reverse the general perception that Yahoo is teetering on the edge of history's trash-bin, with an aging customer base and unexciting features. The question is, could anyone actually pull it off? Is Yahoo capable of an Apple-style turnaround, or are its current actions merely delaying the inevitable?"

44 of 260 comments (clear)

  1. Of course by MrEricSir · · Score: 5, Insightful

    Yahoo *could* stage a comeback, but why? What makes a product or service from Yahoo unique?

    Can't answer that question? Of course not. Yahoo is a holding company made up of numerous acquisitions. If there's an identity buried in there somewhere, it's a Frankenstein's monster, stitched together out of spare parts. There's nothing cohesive about Yahoo, nothing that makes it special as a company, and there never was.

    --
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    1. Re:Of course by sribe · · Score: 3, Insightful

      Can't answer that question? Of course not. Yahoo is a holding company made up of numerous acquisitions. [wikipedia.org] If there's an identity buried in there somewhere, it's a Frankenstein's monster, stitched together out of spare parts. There's nothing cohesive about Yahoo, nothing that makes it special as a company, and there never was.

      That's all true. But the question is whether or not that can be changed ;-)

    2. Re:Of course by HockeyPuck · · Score: 3, Interesting

      Yahoo *could* stage a comeback, but why? What makes a product or service from Yahoo unique?

      Can't answer that question? Of course not. Yahoo is a holding company made up of numerous acquisitions. If there's an identity buried in there somewhere, it's a Frankenstein's monster, stitched together out of spare parts. There's nothing cohesive about Yahoo, nothing that makes it special as a company, and there never was.

      So what if it's made up of acquisitions...? I doubt there's very many large companies that haven't made a significant number of acquisitions. All three with far more than 100 companies bought or merged with:

      http://www.cisco.com/web/about/doing_business/corporate_development/acquisitions/about_cisco_acquisitions.html
      https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Google
      http://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_IBM

      By the way, it seems that Yahoo! has the fewest acquisitions of any of the three, including your oh so dear to your heart google.

      https://en.wikipedia.org/wiki/List_of_mergers_and_acquisitions_by_Yahoo!

      How'd you get marked insightful?

    3. Re:Of course by longk · · Score: 4, Interesting

      IMHO that's just her way of waking everybody up and making it clear this boat is changing its course. With time, I'm sure people will be working remotely once again.

    4. Re:Of course by Grishnakh · · Score: 4, Informative

      Because she's a female. If she were a man, we could call him an "overrated bozo". You wouldn't call a woman a "bozo", since that's a reference to Bozo the Clown, who was a man.

    5. Re:Of course by pauljlucas · · Score: 2

      ... cancelling all remote working while the rest of the word is learning how to adapt to and benefit from it.

      I talked to someone who works for Yahoo who told me that, out of the roughly 11K employees, this affects only around a couple of hundred. Of those, many will simply get a desk/cubicle at the office (thereby meeting the "on site" requirement), but actually still work at home most of the time. The reality is that this is basically a non-change.

      That being the case, it still makes you wonder (if it's as much or a non-change as claimed by the Yahoo employee I spoke to) why bother? The Yahoo employee has no answer to that.

      --
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    6. Re:Of course by Anonymous Coward · · Score: 5, Informative

      I was employed with Yahoo when they made the WFH change. We were lied to even within the company. It was initially communicated permanent WFH employees would no longer be able to WFH to help drive innovation. 160-something permanent WFH people out of ~16,000 employees were suppose to make a HUGE impact on innovation?? It became clear shortly after the announcement that it was BS. The real reason was communicated a few days later. They made the decision after looking at the VPN logs and saw people WFH weren't even logging in. Not necessarily the permanent WFH people, just in general. It wasn't a stealth layoff, it was a get people to actually do their work.

      Do I think Yahoo will make a comeback? Absolutely not. There is way too much dysfunction in that company to fix.

    7. Re:Of course by DerekLyons · · Score: 2

      Yahoo *could* stage a comeback, but why? What makes a product or service from Yahoo unique?

      Frankly, you could ask the same question, substituting "Google", and give the same answer.
       
      The only real difference between them is Google is (and inexplicably remains) a darling of the soi-disant technorati. Hence the constant stream of comments like yours and those in the summary. In reality, Yahoo! is much like Facebook, doing decently despite the fact that a narrow and shallow demographic disapproves of it.
       
      What's going to kill Yahoo! though is Mayer's misguided attempts to make it hip and kewl and l33t and taking on Google rather than keeping it functional and improving the dodgy and bodgy bits. The Flickr 'upgrade' is nothing but flash and sizzle that's added nothing, dropped existing functionality, and ignored some longstanding problems. Worse yet - ads are coming...

    8. Re:Of course by LWATCDR · · Score: 3, Informative

      Except that it made $3.370.000,000 in net profit. I have to wonder why people keep talking about can Yahoo stage a comeback. It is still making a lot of money. I wish I was failing by only making 3.75 billion dollars.

      --
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    9. Re:Of course by TrollstonButterbeans · · Score: 2

      What makes a product or service from Yahoo unique?

      I'm kinda partial to their chocolate 'Yahoo' drink that comes in the glass bottle at the convenience store.

      --
      Priest: "Universe from nothing, no laws of physics, sped up time"+ huge discrepancies. Creationism? No. Big Bang Theory
    10. Re:Of course by gronofer · · Score: 2

      Customer service, perhaps? What do you do when Google closes your account for no obvious reason, as people have reported? They won't reply to your emails. I don't have a lot of experience dealing with Yahoo, but a recent email to fix a login problem with a service I haven't used in years, did actually get a useful reply.

  2. Re:the new flickr interface by 0123456 · · Score: 3, Insightful

    Yes, it is. It's a horrible Metroised mess of pictures that trades function for shiny.

  3. Re:How quickly can they de-crap their products? by tompaulco · · Score: 5, Informative

    Look at gmail. Clean. Simple. Functional.

    Well, with g-mails latest changes (admittedly a year old now), the question in my mind is whether yahoo can maintain status quo long enough for Google to shoot themselves in the foot by making their product more crappy.

    --
    If you are not allowed to question your government then the government has answered your question.
  4. Re:Come back to what? by roc97007 · · Score: 2

    Facebook can't even be the next Facebook, these days.

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    Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
  5. They blew a golden opportunity by Tablizer · · Score: 3, Insightful

    Yahoo had the perfect opportunity for roll-your-sites and social networks. Geocities and related services were popular in the late 90's, but they didn't improve the products, such as making them more click-to-build etc. so users didn't have to learn HTML. They sat on it and it rotted. They also had a reputation for crappy customer service. They could have been the next Facebook + Google.

  6. Re:Can Apple Actually Stage a Comeback? by Grishnakh · · Score: 5, Interesting

    There's always an exception somewhere. Steve Jobs, love him or hate him, was a uniquely talented individual, and if Apple hadn't brought him back the way they did, they would indeed have died years ago. I seriously doubt this Marissa Mayer is this sort of uniquely talented person. Moreover, Apple has always had a bit of a cult around it due to the qualities of its products (remember, their whole goal was to make computers that regular people could use for work and everyday tasks, hence their extreme focus on UI and UX from way back when Jobs toured PARC). Yahoo doesn't have anything like this; its whole claim to fame was that it was a web portal back in the days before Google and search engines; essentially it started out as a giant web directory. This whole concept is totally obsolete now, so they tried to pitch themselves as a "front page" to the internet, but not many people care about that any more.

    The only way I see them surviving is if they use the cash they still have and re-invent themselves into something different, mostly abandoning this "web portal" crap. I have no idea what that would be, however, and since really revolutionary ideas (like Facebook, Twitter, etc.) never come from large, established corporations, but rather from tiny start-ups, I think their days are very numbered.

  7. No. by Lumpy · · Score: 4, Insightful

    Not with the complete Moron CEO they have. That woman has no idea how to run a business. You do NOT insult your customers to gain market share...

    Her Comments , “There’s no such thing as Flickr Pro today because [with so many people taking photographs] there’s really no such thing as professional photographers anymore...”

    I really hope someone told her that she was a complete idiot for saying those words at a press conference.

    --
    Do not look at laser with remaining good eye.
  8. With Facebook integration as bad as this... by torndorff2433 · · Score: 2

    To add facebook to my Flickr account, it _only_ wants access to this: Yahoo! would like to access your public profile, friend list, News Feed, birthday, work history, status updates, education history, events, groups, interests, current city, religious and political views, personal description, likes and your friends' birthdays, work histories, status updates, education histories, events and current cities. Yahoo! would like to post on your behalf. O.o Get with the times

  9. Re: How are we supposed to know by hairyfeet · · Score: 3, Insightful

    Yeah this is a giant fail because the whole point of "Ask Slashdot" is to ask solvable problems that are too geeky for your usual places, stuff like "How can I record securely in my car" or like the problem I had with a customer whose computers kept getting hacked i asked in the comments where it turned out his router had been compromised, its for questions which can actually be ANSWERED.

    Whether Yahoo can pull off a come back or not should really be under general, not under Ask Slashdot. As for the question itself, if they continue to not be MSFT? Its possible, I've been making countless Yahoo accounts for customers pissed off at MSFT killing Live Messenger and Hotmail so they could pick up those users and run with them as long as they don't shit all over the UIs like MSFT does.

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  10. What would they come back to? by AdamHaun · · Score: 4, Insightful

    Apple started off making computers (or maybe "integrated hardware/software experiences" is a better way to put it). After their comeback, they still made computers. Now their big thing is portable computers -- a big change, but still related to what they always did. Their focus is on design and UX expertise.

    Yahoo started off making a hierarchical directory of web sites, then dove into the web portal craze of the late 1990s. After their comeback, they will ___________. Their focus is on ___________.

    Fill in the blanks. It's not going to be what they did before, because nobody wants more hierarchical web directories and portals. They have a bunch of people still using their webmail, so that's one option. GMail wiped the floor with them before, but it's been getting clunky lately thanks to G+. Yahoo could try to recapture the clean simplicity of Google's early days. That would be a big challenge indeed -- as a portal company, the idea of leaving blank space on a web page is utterly alien to them.

    It looks like they're producing independent news. That's an interesting option -- they could compete with the Huffington Post et al. Online news is still based strongly on newspapers, so there's room for someone to shake up the format.

    This all seems like a stretch, though. Yahoo's name has little value, and their current expertise isn't very helpful. All they bring to the table is more money than a startup, but it probably won't be enough to save them. Then again, that's what I said about Apple too.

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    1. Re:What would they come back to? by hyperfl0w · · Score: 2

      After their comeback, they will ___________. Their focus is on ___________.

      After their comeback, they will HIRE Time Berners Lee. Their focus is on the Semantic Web.

      Why would the inventor of the WWW work for Yahoo?
      Because you give him ALL the resources to make his dream a coherent reality.

      Long shot for sure, but its what I would do.

  11. Re:No. by Bohnanza · · Score: 2, Insightful

    She is hot, though.

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    Sorry, I'm only a 1336 h4x0r.

  12. Re:YAHOO! ?? by Spy+Handler · · Score: 4, Informative

    i used it all the time. It used to have a human-submitted and maintained tree directory of the internet.

    Think about that for a second.

    So if I wanted to find a good website about DOS games, instead of googling for "DOS Games", I would go to Yahoo and select a top category. It might be "Entertainment".

    And find subcategories, such as Games -> Computer Games -> Legacy Games -> DOS

    And look through the listings.

  13. Re:Can they? by game+kid · · Score: 2

    Plus between trade secrets and accounting wonkery there's simply no way for anyone short of a spy behind a Bloomberg terminal to have an idea what'll happen.

    In brief, this article is SOP for the Lobster.

    --
    You can hold down the "B" button for continuous firing.
  14. Re:Still nothing about the ipad? by hawaiian717 · · Score: 2

    Or, you can use Safari. I have both an iPad 3 and an iPhone, and find that site-specific apps are far less necessary on the iPad, since the screen is big enough that most sites work reasonably well. As to whether that is the case with Flickr site specifically, I'm not sure.

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    End of Line.
  15. A Comeback? Possibly. by Ralph+Spoilsport · · Score: 2

    It all depends on how fast Facebook collapses.

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    Shoes for Industry. Shoes for the Dead.
  16. Re:How quickly can they de-crap their products? by ADRA · · Score: 2

    Just look at the new G-talk to Hangouts conversion. Big shot in the face there. I've talked to insiders and even they're irrate over the changes.. you know its bad when...

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    Bye!
  17. Re:How quickly can they de-crap their products? by ADRA · · Score: 4, Insightful

    Dude, Firefox has worked as well as it always has. Just because its not your cup of tea doesn't make it crappy. One could say the same about IE if you really liked the product differentiation(I'd never, but I can understand the argument) then who am I to say differently.

    Should we all go out and use Unity, Gnome3, Windows8 just because its new and shiny? No. We use what works for us, and if you don't like it then at least keep the smug to yourself.

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    Bye!
  18. Re:How quickly can they de-crap their products? by wisnoskij · · Score: 2

    No, it is objectively worse than it used to be.
    It is even worse than Unity, though I think Windows 8 beats them both.

    --
    Troll is not a replacement for I disagree.
  19. Re:Can Apple Actually Stage a Comeback? by Grishnakh · · Score: 3, Interesting

    No, because history shows that big corporations buying start-ups never turns out well. The big corp has no idea how to effectively use the new start-up, and its potential (assuming it had any) ends up being wasted.

    Of course, most start-ups go nowhere too. But of those lucky few that succeed, we do get things like Google, Yahoo (back when they were successful), and Facebook (ugh).

  20. You know who should stage a comeback? by dccase · · Score: 2

    Slashdot should stage a comeback.

  21. The future for Yahoo.... by King_TJ · · Score: 3, Interesting

    One of my friends started his own venture capital business years ago, after a long career in corporate I.T. (He focuses on funding educational related projects.)

    We were talking a bit about the recent changes at Yahoo, and I know his opinion is that the Tumblr purchase is ill-advised. and looks like it cost the company pretty much all of the available capital it had to spend. After that, I don't think Yahoo is in a financial position to do much more in the way of acquiring anything else. They've got to make do with revamping what they already own (and maybe they think talent obtained from Tumbler will help towards that end?).

    The thing is, Yahoo spent FAR too long concerning themselves with convincing people their "branding" was still relevant, and thought they could somehow "win" simply by reminding folks to consider them for search queries. (Remember all the annoying "Yaaaaahhhhhoooooooo!" ads on TV?)

    Now, even if the current CEO is trying to make serious changes, I think it's going to be too little, too late. Figuring out a way to monetize Tumblr is a full-time job in itself -- and one you MIGHT want to take on if you were an otherwise profitable and successful company. But Yahoo seems like they just bought themselves a big database of porn and pet pictures that has a relatively short shelf-life, before it's not "trendy" to use anymore and the user-base moves on to something else.

    Flickr really was a significantly good service they owned. I knew quite a few photographers who religiously uploaded their work to Flickr (typically with a Pro account since they wanted more storage space and ability to put full resolution photos up). But as they let it stagnate, all sorts of other "Johnny come lately" photo sharing services popped up -- many integrated real tightly with mobile phones, which have become the #1 device used to take photos in the first place.

    The press-conference "slam" against pro photographers tells me Yahoo still thinks it needs to cater to the mainstream -- exactly the group they'll have the most competition with. Bad move. If they really enhanced a paid, "Pro" side of the service and kept it cheaper than alternatives -- I know a LOT of people who have at least a second job dealing in photography who'd sign up and use it.

    Email is a non-starter at this point. Lots of us still have yahoo email accounts, but it's very often just because of old partnerships they struck with ISPs like the regional Bell telephone companies and later AT&T. You ordered your DSL service? You got a Yahoo email with it. Yahoo Groups had a good run but again, they let it pretty much die off. I used to use it occasionally until the groups all seemed to fill rapidly with spam, and upload/download speeds on attachments got so pitifully slow, you wondered if the whole thing ran on an old Pentium 3 in someone's basement. They only get search queries, by and large, because they manage to work deals to keep it a "default" search engine in various programs. None of their stuff really stands out as a tool you want to use that you can't get elsewhere.

  22. It's been coming... by rabidlemur · · Score: 2

    Flickr's reboot came with the new iPhone app, which was completely unexpected in that, it 's actually damn good. Same with Yahoo weather. Yes, Flickr has decided that they're not courting Pro customers. They'd already lost that market 2 years ago, so it's no skin off their nose. They don't WANT you to buy pro, they need the ad revenue and impressions far more.

  23. Re:Can Apple Actually Stage a Comeback? by WaywardGeek · · Score: 3, Interesting

    I agree on all points. However, I don't know what I'm talking about, as results clearly show. Back in either 1998 or 2000 (my wife and disagree as to which party it was), I told a young grad student from Stanford that Yahoo was not only dominating, but would continue to dominate if they did nothing other than buy up all promising new web sites and technologies. This geek was dumb enough to work for stock as the first employee of a company founded by two professors -- yeah, like that ever works. Their big plan was taking on Yahoo and winning, when they had pretty much no capital and from what I could tell, no clue. I knew enough about decent marketing to know they'd be crushed by Yahoo's money. That kid was the first Google employee. So, take whatever I believe, for instance that Yahoo is now clearly doomed, and run the other way.

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    Celebrate failure, and then learn from it - Nolan Bushnell
  24. Re:Can Apple Actually Stage a Comeback? by WaywardGeek · · Score: 2

    Just to back up my point, in 1998, or 1999, I had my wife sell all her Apple stock and buy Red Hat. I could describe why I felt that was wise, but reality clearly proved me wrong. Can Yahoo turn around? I have to say I'd love to see it.

    --
    Celebrate failure, and then learn from it - Nolan Bushnell
  25. Look closer by Anonymous Coward · · Score: 2, Funny

    He signed it there at the end.

  26. Of course they "could" by ron_ivi · · Score: 2

    Yahoo *could* stage a comeback

    Indeed.

    Broadcast.com (that Yahoo payed $5billion for) was the premier video site and *could* take over Netflix +Youtube.

    Geocities (that Yahoo paid $3-4billion for) was the premier social networking site, and *could* take over MySpace and Facebook.

    Altavista (that Yahoo bought along with Overture) was the premier search inge, and *could* take over Bing and Google.

    But it's Yahoo, so they won't.

  27. Re:Can Apple Actually Stage a Comeback? by slashdot_commentator · · Score: 2

    Apple, back in 1998-1999, was on the brink of bankruptcy. Even the early years of Jobs return, Apple was putting out colorful plastic, underpowered computers. It wasn't until the introduction of the Ipod, and Apple's redirection into the consumer device market, did Apple dig itself out of its 1990's stupor.

    Did reality prove you wrong? Hasn't the Red Hat stock grown in multiples of its 1990's value? Did she sell it in the early 2000's?

    --
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  28. Re:Can Apple Actually Stage a Comeback? by teg · · Score: 2

    Apple, back in 1998-1999, was on the brink of bankruptcy. Even the early years of Jobs return, Apple was putting out colorful plastic, underpowered computers. It wasn't until the introduction of the Ipod, and Apple's redirection into the consumer device market, did Apple dig itself out of its 1990's stupor.

    Did reality prove you wrong? Hasn't the Red Hat stock grown in multiples of its 1990's value? Did she sell it in the early 2000's?

    Red Hat had a stock value of 140 before the dot-com crash.... with the amount of stock then in circulation, this was utterly insane and it fell to 2-3 dollars before going up to the 10-20 range a couple of years later. Lately, it's been 50-60 so still needs more than a doubling to reach the old top.

    The pricing back then was utterly insane, though...

  29. Re:YAHOO! ?? by Spy+Handler · · Score: 2

    It worked for me in 1996. There was no Google for you to google back then. But around 98, I switched Altavista, that was the new hotness. It was kind of like a proto-google.

  30. Re:There are many more differences between them by brunes69 · · Score: 2

    It is not the tech community, it is the business community.

    5 Billion in profit may sound like a lot to you and me, but to a company with 11,000 employees it is chump change. There is a reason Yahoo only has a 7x P/E and a $27 stock price... the outlook is horrible. Yahoo's annual revenue has DECLINED every year since 2009. Compare to Google who has doubled there revenue since 2009, and grown it roughly 50% the past two years. Compare to Google, who makes 10x the revenue yahoo does with only 5x the headcount. It is a much more efficient money making machine than Yahoo.

    If Yahoo doesn't stop the bleeding soon then the well will run dry. A company that makes no money can't carry 11,000 employees.

  31. Re:Comeback? by schlachter · · Score: 2

    Dating? Yea, I think the kids still do that. Not sure though.

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  32. Re:Can Apple Actually Stage a Comeback? by jeremymiles · · Score: 2

    Like Android? Or Where 2 (became Google Maps)? Or Writely (became Google Docs, became Google Apps). There are plenty of failures, but there are successes too.

    --
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  33. Re:There are many more differences between them by brunes69 · · Score: 2

    Google+ Photos (aka Picasa) has 343 million active users. Flickr has 87million. I think Google has photo sharing figured out.

    Google groups also dwarfs Yahoo groups. Not only do they have 30 years of back data but the sheer number of available groups is about 100x. I don't even know how you can compare Yahoo to Google in this respect, it is kind of nonsensical.

    iGoogle is being retired because no one uses it. Just liek no one uses My Yahoo. Personalized home pages is about 10 years ago.