What’s Behind Yahoo! CEO Mayer’s Recent Shopping Spree?

What’s Behind Yahoo! CEO Mayer’s Recent Shopping Spree?


(Image source: Mashable / Flickr) BY COLLIN RUANE Yahoo! has been making headlines, especially
in the last few weeks, for its boldness in purchasing roughly a dozen web services since
October — six of them within the last month. Most recently, Yahoo! announced a bid to purchase
video site Hulu which streams content from some of the country’s most popular networks.
This is the second time Yahoo! has taken a shot at acquiring Hulu. (Via MSNBC) AllThingsD notes the price Yahoo! is willing
to pay this time around is significantly lower than it was two years ago. Back in 2011, Yahoo! offered to buy Hulu for
$2 billion before it decided to take itself off the market. Now Yahoo! is offering between
$600 million and $800 million for the video streaming service. However, Hulu has said
it won’t accept offers under $1 billion. Whether Yahoo! acquires Hulu or not, the company
and its new CEO, Marissa Mayer, have been developing Yahoo! in attempts to bring it
back into the spotlight. Arguably, the most notable change at Yahoo!
is its recent purchase of blogging site Tumblr for $1.1 billion. The popular site is home
to more than 100 million blogs and millions of devoted users. (Via The New York Times) A writer for VentureBeat said Mayer is on
fire with changes she has spearheaded at Yahoo!. “Finally, after years of virtual irrelevance
at the search/media company, Mayer has Yahoo doing huge and interesting things again.” The series of acquisitions at Yahoo! prompted
one writer at iTech Post to call it a shopping spree. In addition to taking over many smaller companies,
Yahoo! is also taking control of “Saturday Night Live” after buying the rights to it
in April. SNL currently has its episodes streamed on Hulu. Examiner takes a look at when changes
will be taking place. “The deal with Broadway Video and NBC Entertainment
will cement that all 38 seasons of the skit comedy show will stream only on Yahoo! starting
in September.” Why so many abrupt changes from Mayer? Time
points out the CEO wants to bring concepts to Yahoo! which worked well when she was an
executive at her old company. “Mayer has made clear that she wants to incorporate
Yahoo’s products — like Yahoo Mail, Flickr and its popular home page — into the ‘daily
habits’ of its users. In order to achieve that goal, Mayer is trying to refocus Yahoo
on the ‘user experience,’ which was her specialty at Google.” Mayer’s effort to focus on the user appears
to be working. USA Today notes that in January, Yahoo! had 28 million regular users — more
than twice as many users visiting the site compared to that time a year earlier. And people have noticed the changes at Yahoo!
A blogger for The Motley Fool says the company has a lot of room to grow and is doing just
that. “What helps me remain bullish is that [Mayer]
seems to have a vision for the company, one that she seems to be executing.” Since Mayer took over as CEO, Yahoo’s stock
price has nearly doubled. The price in July of 2012 was less than $15, and, as of Friday,
the stock’s price has risen to nearly $27 per share.

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