If Yahoo subcontracted the searching business, Ali IPO would be the only savior

Yahoo really cannot work on, the 100 Days Restoration by Jerry Yang appears to have nothing effectiveness now. The Wall Street investors have had no patience, Yahoo's share price fell 1.6% last Friday to close at 23.76 US dollars, and it had fallen by about 15% in the past 12 months.

But the one who is really impatient is the management hierarchy headed by Jerry Yang. Although there are a lot of voices about Jerry Yang to be the CEO, a large number of shareholders still expect Jerry Young can be back again, the reason is Jerry Yang knows more about where Yahoo's problem is.

Jerry Yang released urgently his Reform Declaration as soon as taking office. Jerry Yang said, "In the next 100 days or so, I will focus mainly on making a new strategic plan for the company. So far, I may not answer all the questions, but I am very clear about the goal that I want to achieve."

The change of human resource still exists.

On July 18, Jerry Yang said his "100 Days Restoration "declaration. Till now, more than 50 days have elapsed, Yahoo still has no great improvement, the only change is that its turbulent management hierarchy.

On August 30, Susan - Decker, the CEO of Yahoo, declared that Gregory Coleman who is the executive vice president in charge of the global sales would leave in February next year. In June of this year, Wenda Harris-Millard, the chief sales officer of Yahoo switched to be a senior in Martha Stewart Living Omnimedia of "Homemaking Queen"---Martha Stewart.

Jerry Yang's restoration still doesn't work.

Jerry Yang, who has only taken office two days in Yahoo, had signed a purchasing document that Yahoo invested 100 million US dollars to purchase American college sport website---Rivals.com.

The latest acquisition of Yahoo is on September 5th, it spent nearly 300 million US dollars in cash to acquire the global online advertising network company---"Blue Lithium". In the field of Internet advertising, Yahoo still wants to have tenacious competition with Google and Microsoft.

However, these acquisitions haven't made Yahoo's share price increase again. Also, Yahoo still has not changed its declining tendency, the same in searching field. According to the data of market research firm---comScore, it shows that in June this year, the United States users completed two billion searches through Yahoo; it means that Yahoo only occupies 25.1% of the Internet search market in America, which is lower than the 26.4% in May of this year. It is reflected in the stock market that Yahoo's share price has decreased about 15% in the past 12 months.

The search business is going to be subcontracted for many times?

On September 11, the Wall Street Journal reported that during the entire summer, Jerry Yang was activated to evaluate the Internet search business. Informed sources said that according to the discussion of the senior managing officers, Yahoo would possibly outsource the search engine advertising business to Google or Microsoft. One source said that Yahoo and Google had mentioned the idea before.

Analysts believe that if the outsourcing planned, in the search engine advertising field which occupied 40% of the American Internet advertising market, Yahoo will have the slightest initiative.

Of course, some analysts believe that outsourcing search engine advertising business can help Yahoo to take advantage of other companies' strong profitabilities, and at the same time, Yahoo also can reduce its operating costs.

The industry believes that in the era which the search is increasingly becoming the network infrastructure, Yahoo may die faster without the search.

Recently, the rumor that Yahoo is going to be purchased is seething. Although Steve Ballmer, the CEO of Microsoft CEO, hasn't given any response to purchasing Yahoo, the rumor that Yahoo is going to be purchased really hasn't been stopped. Now, some analysts are still maintaining Yahoo's share price to "in-market" and one of the reasons is that Microsoft might become the potential buyer of Yahoo.

Maybe, the one who has the opportunity to save Yahoo's share price is Alibaba IPO. In the afternoon of July 28, , the Chairman of the Board of Alibaba Group, Ma Yun had announced in Hangzhou Huanglong Sports Center to more than 6,000 employees who had participated in the annual meeting that Alibaba's B2B business had been officially launched the listing process.

With the appreciation in assets value by Alibaba's listing, Yahoo who had purchased 40% share of Alibaba with 1 billion US dollars in 2005 will undoubtedly become the beneficiary.