Yahoo: Expanding Wireless Effort, Once Again

Piper Jaffrey analyst Safa Rashtchy believes next growth engine for Yahoo will be in the wireless arena: “We believe the company’s three recent announcements relating to new wireless messenger, photo services, and Phillips home entertainment services are good examples of how Yahoo! will leverage its existing platform and consumer relationships across various new technologies…Our interest in particular is in wireless services, which has clearly shown to be real and very profitable in Asia and is showing some early signs of resurgence of growth in the U.S. The wireless messenger service is not a new service but an enhancement to the existing Yahoo instant messenger. We do expect, however, that Yahoo will introduce new wireless services and we may once again see competing announcements from Yahoo and AOL, as we did in 1999-2001 time frame.”

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