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On Tuesday, we finally got
Thompson's plan. The only problem is that no one cares.
came from PayPal, a division of
eBay(EBAY - Get Report), announced that the company will be realigning itself into three divisions; Consumer, (which is comprised of Media, Connections and Commerce), Regions, which targets emerging markets, and Technology, which focuses on the company's infrastructure.
This is nothing more than shuffling deck chairs on the Titanic.
The Sunnyvale, Calif.-based Internet company still has an abundance of properties after the layoffs and restructurings, many of which time, or competitors, have passed by (think Yahoo! Messenger, Jobs, and Shopping, just to name a few). There have been reports that, even with 2,000 people unfortunately losing their jobs, there are still several thousand more that could be on the chopping block. Eric Jackson, co-founder of Ironfire Capital
tweeted he expects an additional 3,000 job cuts by the end of May. Jackson is long Yahoo! shares.
The problem is that Yahoo! hasn't innovated in years. It lost the search war to
Google(GOOG - Get Report), the social war to
Facebook, and despite its audience of 700 million users, which the company and its investors like to tout, it hasn't figured out how to monetize them. There are two reasons for this. For one thing,
the company's management has been incompetent for too long,, and there is simply is no good way to monetize Yahoo!
Media companies around the globe are struggling. Just look at the stock charts of companies like
The New York Times(NYT - Get Report).
Tribune has been in bankruptcy seemingly forever. Without an additional platform to subsidize the news, such as television, or specialized terminals from the likes of
Bloomberg, media has become a business that's extremely difficult to make money in.