Articles of the Day


Jerry Yang To Step Down As Soon As Yahoo Board Finds Replacement — Yahoo CEO Jerry Yang will step down from his post as soon as the board finds a suitable replacement, and BoomTown broke the story. The official release from Yahoo is out. Kara also has his full memo to the Yahoo team, in which Yang says he’ll participate in the search for his successor. Once the new CEO is in place, Yang will go back to his role as Chief Yahoo—and he will retain his seat on the board.The board has retained Heidrick & Struggles, an executive search firm, to assist in the process. Yang will participate in the search for his successor.

Google Brings Voice Recognition To Mobile Search — Google was scheduled to launch a voice recognition tool for Apple’s iPhone last Friday as part of a free mobile application allowing users to perform a Google search by speaking a query into the phone. The voice-recognition application, made available for free through Apple’s iTunes Store, is an update to the search tool that is already available for the iPhone. Google uses the technology for Goog 411, too. The voice query passes through algorithms converting to text.

Hulu To Match YouTube In U.S. Revenue Next Year — eHulu, the joint online video venture from News Corp. and NBC, looks poised to match YouTube in U.S. advertising revenues next year, according to a new estimate. This is shocking, considering that YouTube has more than 10 times as many monthly visitors as Hulu (83 million vs. 6 million). Nevertheless, Screen Digest is forecasting that both Hulu and YouTube will earn $180 million in revenue in 2009. The research group estimates that YouTube will make $100 million in U.S. revenue this year, compared to Hulu’s $70 million. Silicon Alley Insider points out that Screen Digest is most likely talking about gross revenue. Hulu actually passes along about 70-80% of revenue through to its content providers, so Hulu’s net revenue is probably closer to $14-$21 million. YouTube also shares some revenue with content providers, but a far smaller percentage.

Why Yahoo Still Matters — Yahoo shares may have fallen from $33 to $10 in the past twelve months, but the Web giant is still far more valuable in the eyes of Madison Avenue than it is in the eyes of Wall Street. Indeed, size still matters to Madison Avenue. “Advertisers are looking at where’s the traffic, volume and value is today. And today is very positive for advertisers at Yahoo,” said Chris Moloney, chief marketing officer at Scottrade. “Google is considered to be the 800-pound gorilla of the internet but it doesn’t have content the way Yahoo does. It receives a massive volume of traffic.” In fact, so big is Yahoo’s audience base that Chrysler’s chief marketing officer, Deborah Wahl Meyer, says she considers Yahoo “almost as a fifth (television) network.”

Yahoo React: Analysts Expect Board To Get Aggressive On MSFT, AOL Deal — Yahoo’s stock had another down day—its last trade dropped $0.19 to close at $10.63—but it could have a nice lift as word of Jerry Yang’s decision to step down as CEO takes hold. In the meantime, analysts following Yahoo shared their reaction in quick notes sent to investors and in press interviews: EO will come from outside: UBS analyst Ben Schachter looks at the list of possible successors and concludes that the company’s board will go outside. In particular, Yahoo president Sue Decker is unlikely to be selected for the top job because she doesn’t represent significant enough change by investors. Yang’s departure as CEO—he’ll revert to his role as “Chief Yahoo” and will retain his board seat—could also spur other board members to pursue “a more meaningful restructuring of YHOO.” Finally, expect the volume of the never-ending talk of a Microsoft deal to rise. Schachter adds: “We still believe MSFT will eventually own YHOO.” Even if a takeover doesn’t happen, the potential for news around restructurings, tie-ups with some combo of News Corp., Time Warner/AOL, Google and others “could be catalysts for shares.”

ESPN To Get Football BCS Starting In 2011; Deal Includes Digital, International — The details are still sketchy and the official announcement has yet to be made by ESPN (NYSE: DIS) and the Bowl Championship Series Group but Fox Sports said today that it will not be hosting the premiere college football games after its current contract expires in 2010. That leaves ESPN, which I’m told is willing to pay $125 million annually for four years to carry the games. This amount has not been confirmed with ESPN but represents the 50 percent increase the BCS governors are said to be seeking. Fox, which is paying $82.5 million a year currently, offered about $100 million a year during its exclusive renewal period. The BCS opened negotiations with ESPN, then, as per the current deal, returned to Fox with the material differences, which decided none of them– including the addition of international rights—were worth the considerable uptick in price.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: