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Yahoo is asking for social networks

Yahoo plans to invest heavily in social networks. She needs to make up for lost time, because it is services like MySpace , YouTube and Facebook that now show the best results in terms of the increase in the number of users.

Analysts expect that Yahoo will lead a more aggressive policy in the field of creating communities, reports Reuters . These expectations increased after the deal between Google and YouTube.

It’s possible that Yahoo’s goal is to acquire a MySpace rival, Facebook. “This deal will only make sense if the service is properly priced,” says Jim Friedland, an analyst at Cowen & Co, commenting on rumors that a figure of $ 1 was announced during the negotiations between Yahoo and Facebook owners. billion
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As a result of the fact that for many years the company has focused on secured visitors, Yahoo’s profit growth rate is now significantly lower than that of social services, whose popularity is growing rapidly. The company failed to create a loyal community. “Those who use Yahoo may do this regularly, but they don’t attract new users,” said Martin Pyykkonen, an analyst at Global Crown Capital. He notes that in the 3rd quarter of 2006, the increase in users decreased to 2%, which is significantly lower than in the 1st quarter - almost 8%. At the same time, social services showed a 2-fold (and some - 3-fold) increase in the number of users.

The company's quarterly report, published on Wednesday, talks about a 37% reduction in profits, largely due to low incomes from corporate advertisers.

According to statistics, Hitwise for the period of October 8-14, services owned by Yahoo, visited 10% of Internet users. MySpace occupies 7.7% of the “market”: in August, the main page of this social network became the leader in attendance.

At the moment, Yahoo is beginning to transform services related to travel and finance, bringing there the idea of ​​"sociality". This uses the experience of the company's most successful project in this regard - the Flickr photo service.

Executive Director Terry Semel assures investors that the company is looking for ways to increase its popularity among users. “It's time to invest in services designed for a new audience, attracting it with exclusive opportunities. We plan to take a leading position in this area, investing in social, video and mobile services. ”

Source: https://habr.com/ru/post/4559/


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