Don’t call it a comeback

Yahoo's showing signs of motion after a long period in the morgue. But is it reborn, or just undead?

A conference call discussing fourth quarter earnings at Yahoo appears to have ignited a surge of optimism for the veteran web company’s prospects – just google “yahoo comeback” to find out – but are commentators getting carried away?

Yahoo reported a 14 percent rise in earnings during 2012’s final quarter, supported largely by growth in search advertising revenue, and pleasantly surprised investors: share price immediately jumped 5 percent, topping off a 25 percent six month rally.

Most encouragingly, in a call to analysts discussing the result, newly installed CEO Marissa Mayer said the company’s next investments would go towards the entrenchment of Yahoo services in users’ “core daily habits” – the most core of these (if you don’t mind the term ‘core’ being used as an adjective) being its search function.

The FT headlines this as Yahoo “taking on google in the search wars”, but I don’t know if I’d go that far.

To put things plainly, despite overall revenue growing 4 percent, Yahoo’s actual net income fell 8 percent year-on-year, a fact that seems to appear at the bottom of most reports on the results if it appears at all.

More to the point, even with search advertising revenues healthy, the company only presides over a small and shrinking slice of the search advertising market - 6.2 per cent in 2012 compared to 17.8 per cent in 2008 according to one research firm.

So why the sudden optimism?

Because, at the heart of it, everyone likes an underdog story. And this has all the ingredients of a great one.

Google, having dominated the search market since the advent of its PageRank function in the early 2000s, is an obvious Goliath, and has fallen prey to the same erosion of public trust that has afflicted other web giants – see also Facebook, Apple and Amazon.

Furthermore, Yahoo has a young and charismatic CEO who has obviously captured the imagination of analysts and investors alike. And let’s not forget she’s ex-Google – not only does this fact make the narrative more pleasing, it adds serious credibility to the idea of the near-forgotten nineties relic clawing back ground from a complacent rival.

Yahoo’s long-term prospects in the ‘wars’ for users’ everyday web activity remain dubious. At the very least, however, the current burst of media excitement has awarded it an early marketing victory.

Yahoo's Marissa Mayer in Davos this year. Photograph: Getty Images

By day, Fred Crawley is editor of Credit Today and Insolvency Today. By night, he reviews graphic novels for the New Statesman.

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Green party calls on Labour, Lib Dems, and Plaid Cymru to form a "progressive alliance" next election

Will Jeremy Corbyn, Tim Farron and Leanne Wood agree to meet for talks?

The Green party leadership have called upon Labour, the Lib Dems and Plaid Cymru to work together to challenge the Tories at the next election. In an open letter, the Green leaders stress the exceptional circumstances occassioned by the vote to leave the EU:

“In a spirit of openness and transparency, we are writing to you as leaders of parties which oppose Brexit, to invite you to a cross-party meeting to explore how we best rise to the challenge posed by last week’s vote to Leave the EU.  

“We have a UK Government in chaos, an economy facing a crisis and people up and down the country facing serious hardship. There is an urgent need to make a stand against any austerity and the slashing of environmental legislation, human and workers’ rights, that may come with Brexit. 

“With the growing likelihood of an early General Election, the importance of progressive parties working together to prevent the formation of a Tory-UKIP-DUP government that would seek to enact an ultra-right Brexit scenario is ever more pressing.

Caroline Lucas shot down a rumour that she would be joining Corbyn’s shadow cabinet. But her party has decided to call for a progressive alliance and an early general election. 

Key to such cross-party talks would be the demand for electoral reform, as the leader Natalie Bennett added in a statement:

“Central to such a progressive alliance would be a commitment to proportional elections for the House of Commons and an elected second chamber.”

The call for a more plural politics follows a post-referendum surge in Green party membership, with up to 50 people joining per hour.

Here’s the letter in full:

Open letter to: Jeremy Corbyn, Tim Farron, Leanne Wood on behalf of Green Party of England and Wales,

In a spirit of openness and transparency, we are writing to you as Leaders of parties which oppose Brexit, to invite you to a cross-party meeting to explore how we best rise to the challenge posed by last week’s vote to Leave the EU.  

Britain is in crisis and people are scared about the future. Never have we had a greater need for calm leadership to be shown by politicians.  

We have a UK Government in chaos, an economy facing a crisis and people up and down the country facing serious hardship. There is an urgent need to make a stand against any austerity and the slashing of environmental legislation, human and workers’ rights, that may come with Brexit. 

With the growing likelihood of an early General Election, the importance of progressive parties working together to prevent the formation of a Tory-UKIP-DUP government that would seek to enact an ultra-right Brexit scenario is ever more pressing.

This is an opportunity to recognise that a more plural politics is in both the Left’s electoral and political interests. This crisis exposes the absurdity of our first past the post electoral system.  Just 24 per cent of those eligible to vote elected the government that called the referendum. The only fair way to proceed is to have a proportional voting system where people can back the politicians who they believe in, rather than taking a gamble and not knowing who they will end up with.  

The idea of a progressive alliance has been floated for several years, and proposals have once again been put forward in the context of the current crisis.  We believe that the time has come to urgently consider such ideas together in the context of a Westminster Government. We recognise the very different political situation in Scotland, given the strongly pro-EU majority there. We hope that co-operation between progressive parties their can ensure that this mandate is respected, and we will support them to keep all options open.

We look forward to your response,

Natalie Bennett, Leader of The Green Party of England and Wales

Steven Agnew MLA, Leader of the Green Party of Northern Ireland

Alice Hooker-Stroud, Leader of Wales Green Party

Caroline Lucas, MP for Brighton Pavilion

India Bourke is the New Statesman's editorial assistant.