Almost every financial news outlet and website ran the news that Yahoo! (YHOO) was realigning its management. The portal company said "The moves support its strategy to be the starting point for the most users, the must-buy for the most advertisers and the platform of choice for developers." It is hard to say what that means, but it would be equally hard to say that it is anything other than vague.
The market is wise. Its reaction to the announcement was nothing. Yahoo!’s shares moved up a few pennies, but volume is running very light–about half its normal daily trading.
Yahoo! said a few people would get new jobs. A few positions are being created, but the company has not appointed people for these. Perhaps the decisions were hasty and they could not locate the appropriate bodies.
Shareholders don’t care about the news. It does not show any indication that the board or management have a plan to improve the company’s revenue or to cut costs to increase margins.
A month or two from now, it will be hard to find Yahoo! in the financial news. It will have simply have become less than ordinary again.
Douglas A. McIntyre
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