Comm101 Paul

Yahoo is a worldwide renown internet company that competes with google as a search engine and news feed for many people across the world. Its success has been based upon its news and communication usage by a wide variety of age groups, but has struggled to appeal to the young teenage age group as well as other sites. Due to their recent selling of a portion of their stake in the Alibaba Group, an internet e-commerce corporation, they have a large amount of available money to invest in other companies. To start attracting the younger audience, they have been talking about trying to negotiate a deal with Snapchat, an app that is used to send photos that disappear after time as a way of communication. Being a teenager myself, I use Snapchat on a daily basis to communicate with friends, as it is a fun way to interact with them when im on to go. By settling a deal to invest in the company, Yahoo will have the ability to compete in the online messaging sector making their company more relevant to young consumers. Yahoo has lacked to compete with companies like Facebook in this particular sector, so this investment will help their company rebound and become a large competitor in this area. They have already purchased a company called MessageMe to help in their strategic process to increase its contents offerings. As Snapchat continues to grow by working with musicians by allowing people at a concert to post “snaps” that can be seen by anyone who has the app, Yahoo sees their visions and believes by investing they can help the company generate more revenue. This will boost their growth, and bring them closer to closing the gaps with other online communication companies.