As a consumer media company Yahoo needs a way to grow it's user base and increase it's reach. My guess is that many of Yahoo's existing users have been loyal to the companies core products (Mail, Finance, Portal, Homepage, etc.) and see no need to switch to the latest and greatest services, but reaching new users has been a problem.
Through acquisitions Yahoo gains valuable consumer media properties (e.g. Tumblr) and also acquires the talent needed to build new properties.
Regardless, if they kept doing "business as usual" they would still generate revenue, but slowly fade into irrelevance like AOL.
Through acquisitions Yahoo gains valuable consumer media properties (e.g. Tumblr) and also acquires the talent needed to build new properties.
Regardless, if they kept doing "business as usual" they would still generate revenue, but slowly fade into irrelevance like AOL.