Yahoo has been taking a beating for a long time now as the company loses market share and key employees. Yahoo’s CEO Scott Thompson spoke recently at the company’s earnings call after his first full quarter as CEO and talked about shedding some of the things Yahoo has been doing. According to Thompson, Yahoo has been doing too much.
Thompson did a decent job for his first quarter as CEO with Yahoo’s revenue flat and earnings up. Thompson has also been at the helm during layoffs and a major reorganization of the once popular search portal. However, Thompson notes that he still is unhappy with the results for Yahoo so far. He noted during the talk that he would be “transitioning” 50 of Yahoo’s current properties without specifying which ones. Exactly, what that transition for the properties may be is unknown, but “transitioning” could mean closures or sell offs.
The company will be focusing on core products such as mail, finance, and sports. Thompson says that shutting down some of these properties could modestly affect its revenue, but the company’s margins will improve. While Yahoo is shutting down 50 of its current properties to focus on its core offerings, Thompson noted that cutting properties doesn’t rule out launching new properties in the future.
“Yahoo has been doing way too much for too long and was only doing a few things really well,” Thompson said.