Yahoo, one of the most well-known companies in America during the original internet boom, is plotting a turnaround focused on leveraging AI across key products like Yahoo Finance and Sports.
Wired reports that Yahoo, the internet pioneer once valued at over $100 billion, is staging a comeback under the leadership of CEO Jim Lanzone as it turns 30 years old. Since taking the helm in September 2021 after Apollo Global Management acquired the company for $5 billion from Verizon, Lanzone has been quietly transforming Yahoo and seizing new opportunities, particularly in artificial intelligence.
Known for his success with turnarounds, including reviving search property AskJeeves in the early 2000s, Lanzone sees Yahoo as an unacknowledged gem. “If you were able to take the name Yahoo off of it and look at the business in 2021, you saw billions in revenue,” he says. Rather than dwell on past missteps, like missing opportunities to acquire Google and Facebook, Lanzone is focused on improving Yahoo’s core strengths.
Under his leadership, Yahoo has divested underperforming units, made strategic acquisitions to bolster key products, and brought in top talent like former ESPN digital head Ryan Spoon to lead Yahoo Sports. The efforts are paying off — Yahoo now ranks Number one in finance and Number three in sports according to Comscore. It also boasts the second largest email service behind Gmail, with hundreds of millions of monthly users in the US alone.
But Lanzone’s biggest bet is on AI. While Yahoo won’t be building its own language models or massive data centers, it is leveraging partnerships and acquisitions to infuse AI across its products. A key move was acquiring Artifact, the AI-powered news aggregator created by Instagram co-founders Kevin Systrom and Mike Krieger. Yahoo News has now essentially become Artifact, using its technology to personalize the news experience.
Next in line for an AI overhaul is the company’s crown jewel, Yahoo Finance, the leading consumer investment tool. Lanzone hints at a major reinvention in the works, saying “You’re going to make more money, you’re going to save more money, and we will use AI to do that for you.” The company has also inked deals with over 100 influencers to make Yahoo a go-to for viral content.
While some may question if consumer affection still exists for the Yahoo brand, Lanzone points to the company’s uptrending metrics as proof there is still “a lot of latent love” for Yahoo. He sees the company returning to its roots, serving users’ daily needs from the moment they wake up with products like weather, news, communications tools and more.
As for the future, Lanzone says Yahoo is currently in “building mode” and compares it to a late-stage pre-IPO company with three potential paths forward — an acquisition, IPO or remaining private. With the current economic uncertainty, an imminent IPO seems unlikely, but a sale could be in the cards if regulatory oversight on mergers relaxes, especially given Yahoo’s existing search and AI partnerships with Microsoft.
Read more at Wired here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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