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August 5, 2013 10:08 pm GMT
Yahoo continued its acquisition spree last week, picking up RockMelt’s team. The company’s product will be all but instantly axed. Yahoo’ssenior vice president of mobile wrote the blog post announcing the hire purchase, so it is not hard to see where RockMelt’s employees are headed. It joins a string of companies, often small and directionless, that Yahoo has scooped up to help fuel its new mobile focus. Yahoo has been successful at finding firms that might be packed with developers that are otherwise hard to hire, and buying the operation wholesale. I’ve lost track of the number of acquisitions, but it’s nearing two dozen since Marissa Mayer took over at Yahoo’s helm. It’s time to ask a new question: At what point does Yahoo’s aggressive purchase of outside firms to bolster its internal development corps help it grow its revenue? It is fair to say that under Mayer, Yahoo has undergone transformation in several ways: Internal culture and morale have improved, the company has made big bets on new demographics, and, yes, it has greatly expanded its pool of mobile developer talent that has helped the company grow its mobile usership. However, those successful efforts have not yet translated to new top line incomes. In short, Yahoo’s reformation has been undertaken during a period of revenue decline; Yahoo’s business is bringing in fewer dollars than it once did. In the second quarter, for example, Yahoo’s GAAP revenue slipped 7%, to $1.13 billion. Every new CEO should be granted a period of clemency, during which they can make initial reforms to the company that they now run. It takes time to institute change, and so for the first few quarters of a new CEO’s tenure, a respectful position of reasonable doubt is fair. However, that time expires, after which the CEO’s strategy can be measured on its own merits. Mayer has executed her plan well, as we noted before. If she had not succeeded at creating a better vibe at Yahoo, I’d argue that her ability to hire through acquihire would have been greatly lessened; a less cool Yahoo would be a less exciting potential new home for an ailing startup. We can therefore begin to judge the strategy’s efficacy. You might argue that it will take more than four quarters to reform a company as old, and large as Yahoo. That’s a reasonable point, but we can also look for
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/mpCzqWc7nxk/
Can Mayer's Aggressive Acquisition Spree Drive Revenue Growth At Yahoo?
Yahoo continued its acquisition spree last week, picking up RockMelt’s team. The company’s product will be all but instantly axed. Yahoo’ssenior vice president of mobile wrote the blog post announcing the hire purchase, so it is not hard to see where RockMelt’s employees are headed. It joins a string of companies, often small and directionless, that Yahoo has scooped up to help fuel its new mobile focus. Yahoo has been successful at finding firms that might be packed with developers that are otherwise hard to hire, and buying the operation wholesale. I’ve lost track of the number of acquisitions, but it’s nearing two dozen since Marissa Mayer took over at Yahoo’s helm. It’s time to ask a new question: At what point does Yahoo’s aggressive purchase of outside firms to bolster its internal development corps help it grow its revenue? It is fair to say that under Mayer, Yahoo has undergone transformation in several ways: Internal culture and morale have improved, the company has made big bets on new demographics, and, yes, it has greatly expanded its pool of mobile developer talent that has helped the company grow its mobile usership. However, those successful efforts have not yet translated to new top line incomes. In short, Yahoo’s reformation has been undertaken during a period of revenue decline; Yahoo’s business is bringing in fewer dollars than it once did. In the second quarter, for example, Yahoo’s GAAP revenue slipped 7%, to $1.13 billion. Every new CEO should be granted a period of clemency, during which they can make initial reforms to the company that they now run. It takes time to institute change, and so for the first few quarters of a new CEO’s tenure, a respectful position of reasonable doubt is fair. However, that time expires, after which the CEO’s strategy can be measured on its own merits. Mayer has executed her plan well, as we noted before. If she had not succeeded at creating a better vibe at Yahoo, I’d argue that her ability to hire through acquihire would have been greatly lessened; a less cool Yahoo would be a less exciting potential new home for an ailing startup. We can therefore begin to judge the strategy’s efficacy. You might argue that it will take more than four quarters to reform a company as old, and large as Yahoo. That’s a reasonable point, but we can also look forOriginal Link: http://feedproxy.google.com/~r/Techcrunch/~3/mpCzqWc7nxk/
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