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11/21/2024 11:10:03 pm

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Yahoo Struggles Despite Millions of Monthly Users

Yahoo Adds Gmail and Google Apps Account to Yahoo Mail

(Photo : Getty Images) Yahoo continues to struggle in the ever changing market despite boasting of millions of monthly users.

Yahoo has been one of the most recognizable Internet brands in the past two decades. The company was able to create an online empire that offers a wide range of services as well as a robust online advertising business. Statistics show that Yahoo receives at least 200 million unique views every month, but the company is still facing a downward growth.

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Despite Yahoo's impressive stats, investors are still skeptical whether the company can stand on its own. On April 19, Yahoo executives said that they will continue to find investors while at the same time expand the company's video and mobile advertising business.

Yahoo closed its first round of bids for investors on April 18 with companies like Verizon Communications, Apax Partners LLP, TPG Capital and Bain Capital LLP putting up their respective bids.

It is rather rare for an Internet company as big as Yahoo to experience a slump in terms of revenue, especially in current times when Internet-related products and services continue to surge upward. Some market and tech analysts claim that the roots of Yahoo's problems can be traced back to the company's early days.

A market analyst pointed out that Yahoo is losing some of its best software engineers to big tech companies like Google and Facebook because of lack of compensation or incentives. Due to this talent drain, Yahoo is struggling to create interesting products that will keep up with the current consumer trend.

In an interview with The Washington Post, Optimal chief executive officer Rob Leathern said, "They have a lot of traffic, but they've gotten to the point where many people have just lost their patience. They are a shadow of their former selves."

Another analyst pointed out that Yahoo's continued struggle is because the company was not able to quickly adapt to two major trends of the Internet: social networks and mobile devices. The mobile platform dealt the biggest blow on Yahoo since display ads are not really a big trend on the platform. Moreover, aside from Yahoo Mail, most of Yahoo's app never made a huge impact on two of the biggest mobile operating systems; Android and iOS.

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