Yahoo!'s Display Ad Answer: Facebook - TheStreet

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (

Trefis

) -- Acknowledging the ever-increasing presence of social media and content on the Web,

Yahoo!

(YHOO)

is trying to increase its user engagement by integrating its Yahoo! News with

Facebook

.

Visitors will be able to share the articles they are reading on Yahoo! News with their Facebook friends, which is part of a growing trend on the way we consume and share information.

Yahoo!'s online advertising has struggled in recent years as search giant

Google

(GOOG) - Get Report

has gobbled up market share in search and Facebook has goggled up share in display ads.

We currently have

a price estimate of $17 for Yahoo!'s stock

, which is about 15% greater than the current market price.

Move Can Provide Some Respite to Declining Page Views per User

Given that Yahoo! has limited networking or sharing tools at its disposal, this looks like a desperate move by the company considering that Facebook is its biggest competitor in the online display advertising market.

However, user engagement on Yahoo! is steadily declining as the time spent by an average user on Yahoo! sites dwindles. Thus, this move could be more of a necessity than an operational one given the current trend for social media.

See our

full analysis for Yahoo! here

.

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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.