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Why No One Cares About the Plan to Save Yahoo!

Stocks in this article: YHOO EBAY NYT GOOG

NEW YORK ( TheStreet) - With Yahoo! (YHOO) laying off 2,000 workers last week, it was only a matter of time before CEO Scott Thompson laid out his vision for the company.

On Tuesday, we finally got Thompson's plan. The only problem is that no one cares.

Thompson, who came from PayPal, a division of eBay (EBAY), 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.

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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), 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). 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.

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