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Yahoo! Inc (YHOO) Financial News - AOL Gets Last, Best Hope in Private Equity

Yahoo! Inc (YHOO)

AOL Gets Last, Best Hope in Private Equity

Quote: Mountain ViewCalifornia, and Sunnyvale, California-based Yahoo! Inc. were already courting marketers online. AOL’s access business had 3.4 million subscribers as of June 30, down 23 percent from a year earlier, according to regulatory filings. The business may wind down by 2015, estimates Evercore’s Sena. Huffington Post Tim Armstrong, 40, is banking on display ad sales on the Huffington Post, TechCrunch, MapQuest and Patch’s local community news websites to help the advertising business reach profitability before the earnings from the access business vanish. Armstrong acquired the Huffington Post in March for $300 million, a price tag that represents almost a quarter of AOL’s current market value, data compiled by Bloomberg show. “They hope that the display advertising and ad network businesses will basically compensate for that loss and become profitable,” said B. Riley’s Sinha. “The Huffington Post is essentially the cornerstone of their branded display strategy.” Armstrong, who previously ran Google’s ad sales in the Americas, was hired as AOL’s CEO in March 2009. Since the separation was completed in December of that year, AOL has fallen 47 percent. Keith Wirtz, Cincinnati-based chief investment officer at Fifth Third Asset Management, which oversees $16.7 billion. ‘Cash Cow’ “Private equity firms may not be stepping in because they don’t see an end game,” Wirtz said in a phone interview. “This is a cash cow that’s melting like an ice cube.” AOL’s share of U.S. display ad sales is projected to decline to 4.2 percent this year, down from 6.4 percent in 2009, according to New York-based research firm EMarketer Inc. Facebook Inc. will command almost 18 percent of the market in 2011, while Yahoo is expected to draw 13 percent and Google 9.3 percent, according to EMarketer. Private equity firms will be the most compelled to acquire AOL, g...
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Yahoo! Inc Stock Summary

Yahoo! Inc., together with its subsidiaries, operates as a digital media company that delivers personalized digital content and experiences through various devices worldwide. It offers online properties and services to users; and a range of marketing services to businesses. The company?s communications and communities offerings include Yahoo! Mail, Yahoo! Messenger, Yahoo! Groups, Yahoo! Answers, Flickr, and Connected TV, which provide a range of communication and social services to users and small businesses enabling users to organize into groups and share knowledge, common interests, and photos. Its search products comprise Yahoo! Search and Yahoo! Local, available free to users to navigate the Internet and discover content. The company?s marketplaces offerings and services include Yahoo! Shopping, Yahoo! Travel, Yahoo! Real Estate, Yahoo! Autos, and Yahoo! Small Business, which allow users to research specific topics, products, services, or areas of interest by reviewing and exchanging information, obtaining contact details, or considering offers from providers of goods, services, or parties with similar interests. Its media offerings comprise Yahoo! Homepage, Yahoo! News, Yahoo! Sports, Yahoo! Finance, My Yahoo!, Yahoo! Toolbar, Yahoo! Entertainment & Lifestyles, Yahoo! Contributor Network, and Yahoo! Pulse, which are designed to engage users with online content and services on the Web. The company also offers marketing services, such as display and search advertising, listing-based services, and commerce-based transactions to advertisers. In addition, it provides software and platform offerings for third-party developers, advertisers, and publishers, such as Yahoo! Developer Network, Yahoo! Open Strategy, Yahoo! Application Platform, Yahoo! Updates, Yahoo! Query Language, and Yahoo! Search BOSS. The company has strategic alliances with Nokia and ABC News, Inc. Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, California.
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