Yahoo Drowning- better Swim to "For Sale" Sign

Supposing I you are on some low lying islands in the Pacific, and I told you, "You know Global Warming is going to have your whole island under water within two years."
"Yeah, yeah, I know," you respond. "We all know about global warming.
"No, you didn't listen to me. The speed at which of a Huge nearby glaciers is speeding algorithmically, which will singularly affect your cash cow, mango growing islands unless you can miraculously construct a giant dam, I suggest you make plans to vacate the island."
"Yeah yeah, we all know about global warming."
Okay, you don't have to listen, but as Google becomes more of a portal (ice melting more quickly), the same thing is likely to happen to Yahoo.

Video: Yahoo is selling the company.

Yahoo the 1990s "It" search engine, has recently come upon hard times. Activist shareholders are holding the company accountable for exaggerating CEO Scott Thompson's credentials. He who was supposed to deliver Yahoo from mediocrity and stagnation, is now under fire from his own shareholders (and as I write this- freshly fired)
This cannot be good for employee morale, which I already know to be low at Yahoo. It must be difficult to work and innovate when upper management is in turmoil, and lacks direction.
I know several computer programmers in the middle ranks of Yahoo, who complained recently about deteriorating work conditions. Just last month, after seven years at the company, Prabhakar Raghavan, the head of Yahoo Labs, defected to Google. How many engineers do you see defecting from Google who aren't starting their own companies? I suppose you can point to the one who must have been dropped on his head, and decided to join Microsoft.

Make it to the service one more time!
And perhaps the lack of vision, the low morale is beginning to show itself. We all know that Yahoo has lacked the innovation to keep up with the rapid, seemingly daily changes made at Google. Yahoo was still the world's third most frequented website in 2011, and it has been dominated for years, but further holes in Yahoo's dam have begun to appear.
For those of you who are still Yahoo fans, here's a quick review of some items: Yahoo Mail, vs. Gmail or even Microsoft Hotmail. Much more spam. Not only that press the back button and get taken to the login page. Don't have your information saved, you have to enter it again. Time wasted.
Attachments: Yahoo Mail or Gmail? Gmail easier by a long shot! I had since dropped all five of my yahoo e-mail addresses, using them as spam me please accounts only.
There are many more common errors in all parts of Yahoo's website. Simply put, it's buggy.
While Yahoo's management attempts to ride their disgruntled employees and their portal cash cow into Gravy-Land, Google continues to innovate. You notice the black bar Google instituted last year? They gave us time to get used to it, like you do a frog to hot water before you boil it. Now the bar has "expanded."
Noticed customizable Google News? I tried it out recently and discovered I could add topics that interested me, while with Yahoo I could only customize from a selection pre-chosen by the company, but nothing specific like "Yahoo lacks direction" (which I could with Google!)
And what about Google Play? Now you can download a pay per view movie, purchase Android apps, add music to your phone or computer, get an E-book while staying on the Google website. The magical black bar can do more and more.
So what is imprtant here? We already know Google is dominant over Yahoo, the point is that Google is trying to slowly turn itself into a portal, getting people to spend more and more time at Big G, and unless Yahoo takes a dramatically different course in their near stagnant approach to innovation, and takes dramatic steps to bolster morale amongst their workers, Yahoo will lose market share much more rapidly to Google than they are right now.
My trend prediction: as Google becomes more of a portal, the more Yahoo's market share will decline. (they lost 0.2% of total search marketshare in April) Until now, Google has resisted the temptation to become a portal, Larry Page years ago gave an interview to Playboy where he stated that this wasn't Google's business model, "We help you find what you want so you can move on," he stated. This is no longer going to be the case.
Unless Yahoo begins to plug the holes in its dam, more and more water from the Google ocean will begin pouring in, and Yahoo's cash cow will drown. And based on what I expect to be a rapidly expanding loss of traffic, I would LOVE to tell you that I think Yahoo would be an excellent short. I really would.
Here's the challenge. My sources at Yahoo, and I believe you can find similar sentiments on the web, indicate that with activist shareholder Loeb gaining more and more power, they will aquiesce to his goal of building shareholder value: by selling off the company.
Step 1- selling their Asian assets, stake in AliBaba, and Japan Asia.
Step 2- sell the remainder of the company, to old Microsoft, who at least could run nonstop ads for Windows 8, on the Yahoo's front page.
According to sources, Yahoo's value is just slightly north of $17 a share, which is why shorting this stock is likely risky. There are two things I know for sure- first, unless they sell now, their traffic will be continue to decrease, but at more rapid levels. Second, Yahoo shareholders should tar and feather Jerry Yang for not accepting $31 a share in 2008.


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