According to the Business Insider SAI chart of the day, and by all accounts, according to all stock charts you may want to use, Yahoo’s (YHOO) stock is outperforming Google’s (GOOG) this year – a great victory for Marissa Mayer and her team. Google may still be winning with higher profits than all its competitors, but for Yahoo! this is just the beginning and things look rosy for its future.
Yahoo! has been struggling to keep its search business relevant for years, and the company continues to lose market share, down to around 12.2% this November. There are also several monetization issues related to the Search Agreement with Microsoft, in which Microsoft retains a revenue share of 12% of the net (after TAC) search revenue generated on Yahoo! Properties and Affiliate sites in transitioned markets. Still, the company managed to come out with significant earnings growth reports in its third quarter results.
“Yahoo! had a solid third quarter, and we are encouraged by the stabilization in search and display revenue,” said Marissa Mayer. “We’re taking important steps to position Yahoo! for long-term success, and we’re confident that our focus on quality and improving the user experience will drive increased value for our advertisers, partners and shareholders.”
The company keeps also relevant as a media corporation, and is striking content deals with dominant media brands, like CNBC, Walt Disney’s (DIS – Analyst Report) ABC Television Group, Spotify and Clear Channel. Its latest promotional deal with NBC Sports Group will integrate Yahoo! Sports news and events into NBC Sports Group, increasing visibility for each company (content will be shared both online and on television), with minimal investment. The alliance will include Yahoo Sports, the Rivals Network, NBCSports.com, NBC Sports Regional Networks, Golf Channel.com, Rotoworld.com and Allisports.com.
Although the financial terms of the deal were not disclosed, it is known that Yahoo! Sports will be linked to live streams of NBC sports broadcasts, and will develop web shows with NBC that will appear on both websites – a clear win-win scenario that will benefit both companies over the long term, and will also benefit Yahoo! users and viewers. The companies will also collaborate on how they provide advertising. Since this is not a merger, but a collaboration, both companies continue to operate independently, and retain all control over their content, copyright and newsrooms.