Yahoo! Inc. (NASDAQ:YHOO) Experiments by Shutting Down Online Magazines
Yahoo! Inc. (NASDAQ:YHOO) CEO, Marissa Mayer, has pulled the curtain on some of her signature projects most of which have failed to generate any returns. The embattled Internet giant will no longer offer digital magazines for topics like food, auto, health, travel and technology. The confirmation all but highlights the level of uncertainty at the firm.
Some of the topics already covered by the defunct magazines are to appear under Yahoo News. Even with the closures, Yahoo! Inc. (NASDAQ:YHOO) will still continue producing original content. However it is set to reduce its publications to topics covering tech, fashion, and sports.
Closing the book on the digital magazines comes as a surprise as Mayer was the brains behind them. The executive had placed big bets on magazines as she believed they had the potential to reinvent Yahoo as a go-to place for readers and advertisers. She went as far as allocating resources to Tumblr to host the magazines.
The demise of the digital magazines could be down to Yahoo! Inc. (NASDAQ:YHOO)’s personalization technology failing to reach a desired level of sophistication. Even with the publication of new articles by the day, the magazines failed to draw in relevant advertising to bolster the firm’s earnings. According to people with knowledge of the matter, none of them were profitable.
Loss of Talent
However, Yahoo! Inc. (NASDAQ:YHOO) has struggled to gain traction in the business. With the shutdown, Yahoo is set to lose top talents having already notified dozens of writers and editors that their services are no longer needed. Dan Tynan and Bobi Brown are some of the high-profile editors that are leaving the firm. The layoffs are part of a broader plan announced last month that seek to cut the company’s expenditure.
The shutdown of the magazines all but continues to evoke concerns about Mayer’s turnaround plan that has failed to trigger any form of growth. Mounting pressure should be the order of the day going forward as activist investor look to get their way as they advocate for drastic changes.
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