Recent yahoo stories have been focused more on the net firm closing some of its businesses instead of celebrating successes.
The internet services from the firm are valued to be worth a fraction of the stake that the firm has in the e-commerce giant Alibaba.
Thus, after the US tax officials stopped yahoo’s sales of shares in the Chinese business, the CEO Marissa Mayer came up with plan B: sell Yahoo’s core businesses.
From the start of February, several businesses based in the US have been linked to the possibility of bidding.
But Daily Mail newspaper that is based in the US has confirmed it is under negotiations with unnamed parties to present an offer. This announcement has surprised many.
Do people still use Yahoo?
In most parts of the world, Yahoo may be viewed to be a marginal internet brand.
But in the US, it is still as vital as it was from the beginning.
As per the research firm Comscore, it was the third most visited online platform in the States and attracted over 204 million people.
In terms of percentage, facebook had only 1% more users while Google’s websites and apps had only 17% more.
The University of Oxford study found out that in about 1 out of 4 people read Yahoo news and sports in the country.
The millennial – individuals born in the 1980s and later – tend to be main visitors of yahoo due to the firm combining articles about how to handle debt as well as coverage on traditional earnings.
Other properties, including its blogging platform Tumblr, photo-sharing service Flickr, web-based email accounts and Q&A site Yahoo Answers continue to have international appeal.
This implies that the firm can command over 1bn people.
So why change?
Investors are getting restless because Yahoo’s share of users doesn’t match its share of online advertising sales.
Last year, Yahoo accounted for only 1.5% of marketers’ online spend, according to a study by eMarketer.
Figures contrasting those of Yahoo are Google had 35% while Facebook got 19%.
In addition, the position held by Yahoo seems to become worse.
Why is Yahoo not doing well?
One big problem is that as much as Yahoo has a big number of ads, they get less visits as compared to those of its rivals.
“User data is key. Google and Facebook have a huge number of logged-in users, so they can track who it is using their services and use the information to let advertisers direct their ads,” explained Joseph Evans from Enders Analysis.
“Yahoo might have a lot of users, but most of them are not logged into its services, so are effectively anonymous eyeballs.
“They are not totally anonymous – there is some behavioural data that Yahoo makes use of – but generally Google and Facebook are better at knowing who you are.”
With that said, the attraction by Daily Mail may be an intention to grow its US audience.