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...TIME last October. But he also displayed alarming signs of true believerism about web advertising. Disappearing dotcoms made no difference to his bottom line, he said, since traditional companies would pick up the slack. And "the majority of ad spending will be concentrated on the big players"--meaning Yahoo and AOL. (AOL and TIME are part of AOL Time Warner...

Author: /time Magazine | Title: Yahoo Lowers The Net | 3/19/2001 | See Source »

...from there to here? On the surface, it's all about the business cycle, one the tech revolution was supposed to eliminate. Yahoo gets nearly all its cash from online advertising, and this worked very well in the breakneck economy of the past five years. With its 160 million visitors worldwide, everyone wanted a piece of Yahoo's eyeball universe. But in a downturn, advertising becomes more expendable. Web ads are no exception...

Author: /time Magazine | Title: Yahoo Lowers The Net | 3/19/2001 | See Source »

...fair, Yahoo's news was just one act in the carnival of carnage that was high tech last week. Cisco and Intel predicted big revenue drops and job cuts, a combination that set the nasdaq up for a 5.3% fall on Friday. The index is off 59% from its peak, reached a year earlier. Even the good news hurt--unemployment was stable but wages grew, undermining the Street's expectation that the Federal Reserve will deliver a big interest-rate cut later this month...

Author: /time Magazine | Title: Yahoo Lowers The Net | 3/19/2001 | See Source »

What's different for Yahoo is that since its birth in 1995, the company has known nothing but the occasional hiccup on the way to world domination, and it certainly has never had to cope without its one true CEO, known within the company as T.K. The moment he stepped aside last week, the company shut itself up more securely than a city-state under siege, leaving observers jostling to deliver the most ironic epigram. "There were rumors not so long ago of Yahoo buying Disney," offered Jupiter senior analyst Aram Sinnreich. "Now they'd be lucky if Disney buys...

Author: /time Magazine | Title: Yahoo Lowers The Net | 3/19/2001 | See Source »

This banner-ad Alamo brings Yahoo's entire business model into question. Unlike AOL, Yahoo has no Plan B to drive sales. AOL, a service provider as well as a content provider, collects a steady $21.95 a head per month, while Yahooligans get their Internet access elsewhere and are accustomed to paying squat for content. When Koogle gingerly tried to extract even a nominal fee from users of Yahoo's auction service, 90% of them disappeared in disgust. No wonder he felt like joining them...

Author: /time Magazine | Title: Yahoo Lowers The Net | 3/19/2001 | See Source »

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