Blog Post

Yahoo growth options dwindle

Yahoo reported another disappointing quarter, with core revenues down 5 percent to just over $1 billion. Its display advertising business was up 5 percent, but it appears to be losing share to companies like Google and Facebook.

Yahoo is still one of the biggest online properties in the U.S., with fairly sturdy content and communications assets, but its options for restoring growth are getting fewer. If Yahoo cashed out its assets in China, it could use that money for other acquisitions and investments to bolster online advertising and gain a little social media momentum. If Yahoo can’t reenergize its business around video, a social advertising network and/or syndication, as I detail in my weekly update at GigaOM Pro (subscription required), I suppose it could try to sell itself to Microsoft or AOL, assuming they’re still interested.