Social Media and Social Networking

Get Social!

Yahoo Eyes Social Networking Business

Posted by Vaibhav Kalamdani on March 7, 2009

yahoo-logoDon’t be surprised if you see another company entering the social networking arena; this time a giant online media company – Yahoo! Carol Bartz, CEO at Yahoo Inc. said that social networking sites are a key area of interest for the company. This is amidst Yahoo’s on-going effort to compete with Google and capture a larger search engine market share.

Talking about Yahoo’s intention to enter the social networking business, Bartz said that the firm might aim to collaborate with already existing social networking companies instead of adding a new product line in this segment.

Yahoo’s search business is at the second position globally, far behind Google which enjoys about 80 percent of the market share. According to Bartz, every business in Yahoo is up for examination as the company is looking out for ways to compete better with its archrival.

It was just under a year ago that Microsoft Inc. showed keen interest in acquiring Yahoo to dethrone Google from the search leadership. Talking about this, Bartz said that the company has opened the door to negotiations with the software giant regarding a search collaboration, but she also stressed the significance of search data to Yahoo’s advertising customers.

The Social Networking War:

Yahoo’s interest in partnering with social networking companies indicates that it is aiming for an expansion drive to exploit the potential of social networking and make its position stronger in the market. Google already owns Orkut, the foremost social networking site in India and Brazil, besides ensuring a healthy lead in the search competition.

The idea of not building its own social network means Yahoo might look to enter into strategic alliances with leading social networking sites and expand its visibility as much as possible. Other reasons for this could be that creating a social network will take time and differentiating it would be difficult, with the likes of Facebook, MySpace, Twitter, Friendster, Orkut, etc. boosting their operations globally.

If Yahoo eventually confirms its plans to enter the social networking business, it would indeed be interesting to see Google’s as well as Microsoft’s reaction. For now, all that we can do is just wait and watch!

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