Is Yahoo in the process of imploding?
In a deal that one observer called “the saddest $5 billion deal in tech history,” Yahoo agree to sell itself to telecommunications giant Verizon. But a string of events is raising questions about what Verizon will be able to do with Yahoo’s assets if and when the deal closes.
Needless to say, it has been a bad several weeks for the fallen internet star. But with Verizon indicating that it still sees value in Yahoo’s assets and audience, and intending to complete its acquisition, albeit at a potentially reduced price, who cares?
Verizon’s big bank account will ensure that Yahoo lives on, in some form or another, but for perhaps the first time ever, Yahoo faces a severe crisis of confidence with users. The problem for Yahoo is that this is occurring at the worst time possible.
For the past several years, Yahoo’s attempts to innovate and revitalize its brand have largely not been successful. At best, Yahoo has been treading water, but the status quo still gave Yahoo a viable position in the market.
Today, with Yahoo set to change hands, there’s no clear leadership capable of adeptly handling the company’s crises, and if users abandon the company during the transition, there’s a real chance the properties Verizon coveted won’t be what they once were before it has the chance to fix the situation.
For marketers who still turn to Yahoo for its audience, that would be an unfortunate thing.