Yahoo wants a piece of social networking

 

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By Reuters

Posted on 4 Mar 2009 at 08:14

Social-networking sites are a key area of interest for Yahoo, according to the company's new chief executive, Carol Bartz.

Speaking at the Morgan Stanley Technology Conference in San Francisco, Bartz suggested Yahoo might seek to partner with social-networking companies rather than build its own.

"I do not believe we can invent the next Facebook," Bartz said.

But when asked for her thoughts on the tremendous growth of social networks such as Facebook and Twitter, she replied: "It is very clear we have to do that."

Bartz repeated her philosophy that every business in Yahoo is up for examination as the company seeks to revive growth and better compete with Google.

While she opened the door to negotiations with Microsoft about a search partnership, she stressed the importance of search data to Yahoo's advertising customers.

If Yahoo and Microsoft decided to talk about a search deal, "we're going to negotiate as companies negotiate, privately," Bartz said.

Last year, Microsoft made an unsuccessful bid to acquire Yahoo for $47.5 billion or $33 per share. The software company has said it is no longer interested in buying all of Yahoo but remains open to a search deal.

Bartz flagged Yahoo's web-based email product, as well as its news and front-door businesses as "core" Yahoo properties. She also said the company needs to be "running very tight fiscally."

The CEO indicated that Yahoo is considering various strategies to strengthen its position in important markets, including mergers and acquisitions. She said the company could pursue acquisitions or partnerships to grow its footprint in Europe.

The comments come a week after Bartz unveiled a major management reorganisation.