Will Google Save Yahoo! from Bankruptcy?

by San Antonio Attorney

Yahoo Inc.  announced last week that it signed a search advertising deal with Google Inc.  in order to boost its declining revenue.

Yahoo Inc.  reported an 8.4 percent fall on its quarterly revenue last October 20 which was another setback for the CEO Marissa Mayer’s efforts to improve the company.  The company also announced its deal with Google as part of its strategy in answer to its losses.

Reuters reported that Yahoo! will have a partnership to Google in which the search giant engine Google will be providing ads on Yahoo! websites a certain percentage of revenue will be shared to Yahoo.  Also, the partnership of Yahoo and Google was made with Yahoo!’s existing search partnership with Microsoft in which Yahoo also earns revenue from the ads displayed on its website.

According to Business Insider, during the Q3 of Yahoo!, it cut down its workforce spending and will be focusing on a narrow strategies and products.  “As we move into 2016, we will work to narrow our strategy, focusing on fewer products with higher quality to achieve improved growth and profitability,” said CEO Marissa Mayer.

Also, Yahoo! CFO Ken Goldman included in his statement, “This quarter we’ve reduced spending in areas such as workforce, facilities and discretionary expenses, and in our ongoing efforts to control expenses, we’ll continue to focus our headcount on growth initiatives.”

In another standpoint, Yahoo! shareholder Eric Jackson of Ader Investment Management believes that Marissa Mayer is not the right person to run the company.

In a podcast interview of Business Insider to Jackson, the shareholder still has hope for Yahoo! to be successful and first plan is to get rid of Mayer.  He also said that the company should focus on Yahoo Sports and Yahoo Finance and grow traffic.   He also pointed out that Mayer is not professional in terms of her work and does not even know how to manage the company.

Meanwhile, Marissa Mayer is in her fourth year as a CEO of Yahoo and is still thriving to boost the revenue of the company in Q4 with its latest partnership with Google.

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