What exactly was/is their product?
When I said their product isn't the same I meant they are no longer the main info collectors of the web. When considered on the international stage they are still players, however, they have a downward trajectory right now- Google is gaining on them and has all of the momentum.
Consider this: Yahoo is #1 in the WORLD based on traffic (Alexa.com). But nobody will touch their stock? The writing is on the wall. Like I said, there is a downward trajectory there. Good companies find a way to leverage a #1 ranking into dollars and dominance. Floundering companies find a way to allow their stock to drop below 15 bucks while another company sets the standard for the info collection industry (Google).
to be fair, they have in a sense.
the company is profitable. they have cash in the bank. but the writing is on the wall, google has become completely dominant in ads. yahoo has tried to reverse this but google has just taken more share. web ads are a winner-take-all economy...it doesn't look good for anyone going head-to-head with google
yahoo won't go under, but its days as an independent company are likely numbered
Yahoo does not need to cut costs. Cashflow is fine in the company. Cutting costs would be silly at this junction - it does nothing at all to address the problem.
It's like a guy who gets his leg cut off, and your solution is to bind the leg. Yes, that helps, but he'll still die if you don't actually fix the wound.
Search ads on Yahoo are great, however.