This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

10 Steps Yahoo! Must Take to Succeed

Stocks in this article: YHOO

NEW YORK ( TheStreet) -- With a new board in place with Dan Loeb, and an "interim" CEO who is well-liked internally and externally in Ross Levinsohn, Yahoo! (YHOO) seems ready to start taking a number of steps to unlock value.

The laundry list basically breaks down into two parts: internal fixes and external ones.

Yahoo
With a new board and interim CEO in place, Yahoo! seems ready to take steps toward unlocking value.

Internally:

1. Reiterate Yahoo's core business mission. Ross is the guy who came up with the line that Yahoo was "the premier digital media company" to finally answer the mission statement question. He needs to underline that and make it clear to advertisers, employees and investors.

2. Focus. Scott Thompson was right that the company can't be into everything. It clearly has to make hard choices on how it's going to spend resources. They can't be spread a mile wide and an inch deep. This means only doing stuff that Yahoo can be really good at and differentiated from Google (GOOG) and Facebook.

3. Reconnect with advertisers. Arguably, the best thing Yahoo has done in the past year has been its ABC News partnership and launch of original content such as with Katie Couric. Levinsohn has to go back to Madison Avenue and show them that Yahoo will be their best partner. This means launching premium, immersive ad campaigns that are customized and tied around interesting original video.

4. Focus on premium content that's unique. ABC worked. Yahoo needs to do more deals like this, but it has to be smart. These kinds of deals can be very expensive and Yahoo doesn't have unlimited capital. Premium content can be a differentiator for Yahoo, even with YouTube trying to build itself up.

5. Pursue user-generated content. Assuming Yahoo gets some capital back for its Asian stakes and/or a patent agreement with Facebook, a lot of that will go towards stock buybacks and possibly a special dividend to shareholders. Some of it should be used to bolster the core business and allowing it to buy some interesting companies. User-generated content would be a great fit for Yahoo. It lends itself to mobile and is different from Google and Facebook. Companies such as Yelp (YELP), Zillow (Z), HomeAway (AWAY) and TripAdvisor (TRIP) are all a good fit -- though getting more expensive by the day.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,675.11 +213.79 1.30%
S&P 500 1,952.57 +25.46 1.32%
NASDAQ 4,453.6970 +70.85 1.62%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs