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Can Thompson rejuvenate Yahoo?

Sharon Gaudin | Jan. 6, 2012
Yahoo's choice of a new corporate head is sending the message that the company will be rebuilt instead of sold, analysts say.

What does Thompson need to do to get Yahoo moving in the right direction?

"This depends on his mandate," said Allen Weiner, an analyst at Gartner. "If he is charged with getting Yahoo ready for sale or merger, his task is to create more efficient operations. If it is to grow [the company], it's to refine and more clearly define its vision and hit the ground running with at least one new compelling product or service that underscores that vision."

Weiner said he's fairly split between thinking Yahoo should just be put up for sale or try to rebuild. "I would lean toward one last Hail Mary on rebuilding but on a short leash," he added.

Brad Shimmin, an analyst with Current Analysis, said that since Thompson is tasked with stabilizing and growing Yahoo, he must trim some unneeded properties.

"With online advertising dollars still on the rise, I think Yahoo stands a great chance of pulling through this difficult stretch," said Shimmin. "The next 12 months will most certainly give us a good indication of which path Thompson intends to take the company -- toward rejuvenation or liquefaction."

 

 

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