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High Sticker Price for Yahoo Small Business Hosting Purchase

Yahoo Hosting High Price

According to sources close to Reuters (names not disclosed), Yahoo has placed its Small Business Hosting services up for sale and asking for between $250 and $500 million as a selling price. The hosting service is a section of the many products offered by Yahoo and has been up for sale for several months now.

Interest peeked but no takers

Apparently, there has been some interest expressed by a few buyers and firms but no concrete offer has been made by any party. One Reuters source has stated that the interested parties may not have made any offers due to the exceedingly high price being asked. Many feel the value placed on Yahoo’s Small Business Hosting is a bit too steep. Clearly the company’s selling expectations are bit out of sync with what buyers are willing to pay at this time. There has been more recent talk concerning the sale. The increased amount of talk leads one to believe that either an interested party is willing to pay the amount requested or that Yahoo may be considering lowering its asking price.

Trimming off the excess

Yahoo has been attempting to trim off products it no longer feels are part of its core brand – this also includes Zimbra, an open source email server software, and HotJobs, an online employment offerings section of Yahoo. Boomtown has announced it is considering the purchase of Zimbra. While Zimbra is an excellent online email and calendar product, it hasn’t managed to excite the internet population as much as rival’s Google Apps has. Ironically, Google seems to be one interested party in the possible purchase of Zimbra. In furthering its trimming, Yahoo also sold off its interest in Alibaba.com, an e-commerce business located in China. This latest reported sale garnered Yahoo $150 million.

The why of it

Why is Yahoo selling off many of its services, products and interests? It appears that one reason may be a recovering attempt due to the failure in negotiations for a buyout with Microsoft in the previous year. Yahoo saw a sharp and drastic market share fall to the tune of over $20 billion as a result. Another reason for the recent shearing off of products could be to enable Yahoo to focus its energies on shifting toward a social media type of online service, centered around the consumer and advertising. Whatever the reason, it is quite clear that the company is struggling from past issues – including a dismal partnering attempt with AOL and a dissolved ad sales cooperative with Google. Regrouping and reconsidering its brand could be very wise business choices down the road if Yahoo wishes to continue in the same arena as Google.

How it will end

Meanwhile, Yahoo is showing no signs of giving up and is still competing against its closest rival, Google. In fact, in order to snag another regional area for advertising and thereby possibly increasing its market share, the company has recently signed an agreement with Maktoob.com for acquisition. This will effectively increase Yahoo’s search capabilities to those in Arabic regions. If Yahoo is successful in selling what it considers to be extraneous services and products and is able to revamp itself as more of a social media style of search engine product as well as broaden its services to other countries, it should be able to retain its role as one of the most used and best companies around.

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    17th October 2009
    Posted by Web Hosting Consultant in Web Hosting News

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