Yahoo's Plans to Increase Revenue and Profitability

Correction (June 5, 2008): The new fees for the web hosting reflect charges for a three-month period, rather than monthly. 

One of the arguments that the Yahoo (YHOO) Board of Directors used to reject Microsoft's (MSFT) bid to acquire Yahoo is that the Board thinks that Microsoft's bid undervalues Yahoo. The Board believe that they have the right plans in place to accelerate the company's revenue and profitability going forward.

Well, we are getting a glimpse of what those plans might include, among other things. Starting this July 1st, Yahoo is increasing its charges for domain name registration and web hosting. A one year domain name registration fee is increasing from $12.95 to $34.95, a web site starter hosting plan is increasing from $11.95 to $35.85 per month, and the fee for private registration is increasing from $0.99 to $2.97 per month. These are very significant increases.

With the anticipated increase in its domain name registration and web hosting business, and if Yahoo would be able to further monetized its strength in web search and display advertising, it just might be successful in turning the corner around for the company.

Disclosure: none

Comments

[kmanm:]

I have registered over 300 domains in the last five years and several times I wanted to use Yahoo's service. However, I didn't use their service primarily because their fees are much higher than most web host companies. Now they are thinking raising their price, it just gives me another reason to shy away.

2008 May 22 08:08 AM

[Fred J.:]

yeah, this is a silly article. by raising prices on domain registration and hosting (two highly competitive businesses), Yahoo will lose whatever business they have here to low-cost providers. If this is how they are planning to generate additional revenue, they are really screwed.

2008 May 22 09:18 AM

[Clavis:]

I have three domains with Yahoo, but not next year.

2008 May 22 11:29 AM

[User 169665:]

do these plans also include removing the Yahoo employees that are breaking the laws, by keylogging personal computers, disrupting emails both coming and going, committing illegal wiretapping and most of all allowing their beloved Yahoo employees to post illegal content on the official Yahoo internet site?

The illegal content that I mention is beastiality photos, on thie child friendly internet sites, how friendly is that? Wonder what Walt Disney Company would think about that especially when they post their ads on the Yahoo sites, or how about Proctor and Gamble who also posts ads on the Yahoo site, you know the family brand household name products!

Carl Icahn is doing the right thing with Yahoo, I just hope he decides to break the company up and sell it off, then maybe, just maybe, these Yahoo employees that are breaking the laws of the USA will get their just due. Maybe the FBI investigation into what the Yahoo employees have been doing on the internet site will cause the shareholders to seriously consider joining the ranks of the Icahn Raiders of the Lost Ark!

This posting comes to you from thenoseknows

2008 May 22 11:52 AM

[h8ter:]

@ User 169665: what are you smoking?

2008 May 22 12:36 PM