This Day On The Street
Continue to site
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

Marissa Mayer's 'New York Yankees' Strategy Will Fail at Yahoo!

NEW YORK ( TheStreet) -- Ever since Yahoo! (YHOO - Get Report) hired Marissa Mayer as CEO, I have been on board.

In fact, at the outset, when quite a few people second-guessed the move, I lauded and applauded. That was 68% ago. Now the Mayer bandwagon can hardly fit more people on it. That's often how these stories go.

Even if you miss a bit of what will be misguided upside, it's time to bail on YHOO. Hurts me to say this because ever since Al Gore invented the Internet, Yahoo! has been my No. 1 site. Between the home page, weather, sports and finance (the latter two are, by far, among the best in their respective businesses), I have spent more time using Yahoo! properties than any others.

I thought Mayer was the person who would harness what drives these channels, make them even better and cut all that traffic Yahoo! still gets loose on the world.

I think I was wrong.

The small acquihires I can live with, but Mayer's move to take out Tumblr I just can't. TheStreet's Dana Blankenhorn told us Tumblr completes Mayer's vision at Yahoo! Like most people -- set aside a few Tumblr purists -- he likes the deal. But, if you believe Peter Kafka at All Things D -- and I generally do -- Mayer isn't done. She's putting up even more of the company's cash hoard to make a play for Hulu.

Yahoo!'s New York Yankees' Strategy

Everybody has an analogy; we should compare analogies to ***holes, not opinions. And they're quite frequently farther away from the mark.

Supporters of the deal parallel the Tumblr acquisition to Google's (GOOG - Get Report) successful purchase of YouTube. A few have even justified it by pointing to Microsoft's (MSFT - Get Report) buyout of Skype. Sounds great, but, ultimately, these are both flawed analogies.


YouTube and Skype both fit, more than logically, into successful existing platforms. Google did an excellent job integrating YouTube into its ecosystem and previewing the vision. It took Microsoft longer -- and they're still not there -- but they're moving in a more valid direction each day. You would think that one day, the world would associate Skype not only with Windows and Xbox, but with video calling broadly. (To an extent it already does: "Hey, let me Skype you!). Whether Steve Ballmer can execute or not is neither here nor there, but the fundamental vision makes sense.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $130.63 -0.87%
GOOG $532.48 -1.40%
NFLX $624.50 -0.33%
MSFT $46.86 -1.20%
YHOO $42.93 -0.33%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs