capstone assignment

30-8 Case 30 EXHIBIT 4 Yahoo! Inc. Revenue Breakdown "Listings-based services revenue, transaction revenue, and fees revenue. 24 lEurope, Middle East, and Africa. Source: Yahool Form 10-K, Annual Report, http://investor.yahoo.net/secfiling.cfm?filinglD=1193125-12 -86972&CIK=101 1006, accessed May 2, 2012. needs by delivering ilnovative and meaningful search, local, and listings experiences on the search results pages and across Yahoo!"1e In December 2009, Yahoo entered into a ten-year agreement with Microsoft whereby Microsoft would get a 12 percent share of search rev- enues and would provideYahoo with the technology that ran its search engine. The agreement discontinued Yahoo's existing relationship for this purpose with Google. Yahoo generated revenues from this category via listing fees and transaction fees in addition to advertising. Products such as Yahoo ! Homepage, Yahoo ! News, and Yahoo ! Finance formed the cor- nerstone of the Media category whose goal was to engage users with "compelling con- tent."zo While the majority of revenues for this category came from advertising, Yahoo! Sports services such as Yahoo! Fantasy Football were fee-based. Exhibit 4a provides a breakdown of Yahoo's revenues. Yahoo managed its global business geographically, reporling financial results by three segments-Americas, EMEA (Europe, Middle East, and Africa), and Asia Pacific (Exhibit 4b reports financial results per geographic segment). Yahoo sites were in 45 lan- guages in 60 countries. Sales, Marketing, and Product Development Since advertising was the primary revenue driver, Yahoo organized its sales team into three categories based on the type of customer served. The field advertising sales channel sold display and search advertising to leading advertisers and agencies. The mid-market chan- nel sold advertising to medium-sized businesses, and the reseller/small business channel sold it to regional and small business advertisers. While Yahoo employed its own sales teams in the United States, it used a combination of internal salespeople and external sales 'elbid.,olbid. 25 26