There is always something cooking in the pot for Yahoo, and it seems that the cooks involved; Jerry, Icahn, Microsoft, shareholders and many other reasons would barely seize giving us news for food the moment we think it’s over. Kara Swisher has reported of news that hits more at the work force of Yahoo and the shareholders; which is another series of cuts and slicing by the company.
The company has marked the adoption of new strategies that are targeted at figuring out the working formula that shows how the consumer and advertising business of Yahoo is carried out. The two strategies have been quite creatively named as Judo and Aikido; the very well known forms of martial arts. And that doesn’t mean Yahoo will be into fist fight with anyone.
Yahoo has classified the role of these strategies as well; where Aikido would focus on consumer products and Judo on how Yahoo manages its advertising clients. The primary focus, according to various sources within the company is to look out for cuts that can be made in the company in order to cope with the goals that Yahoo has promised to achieve after the fallout of the deal with Microsoft (that of course hurt the software giant).
Despite Yahoo’s claims at terming the company being worth a lot more than what had Microsoft put a bid for a total buyout. The present plans are set to raise Yahoo’s revenue to $8.8 billion by the end of 2010. The per share cost remains afloat at $20 and the deal with Microsoft dead, Yahoo faces an uphill task given the present situation to raise itself in order to achieve this.
There is enough to cut out the cost in order to get a head start at achieving the target; they might include pulling off expenses vested in the mobile and media properties. One of the sources speculated as how exactly would Yahoo achieve this and said:
Yahoo barely made its second-quarter numbers and there is a definite ad recession now. So now we have to once again rethink everything to deliver what we said we would, and the only way to do that is through cost cuts.
Well it remains to be seen as to how the plan proceeds and what level off success the two strategies beat upon. Till then it’s Yahoo all alone with all the pressure on its management to keep everyone satisfied.