Yahoo Is Still Here—and It Has Big Plans for AI

Yahoo Is Still Here—and It Has Big Plans for AI

  • 21.03.2025 10:00
  • wired.com
  • Keywords: AI

Yahoo CEO Jim Lanzone is reviving the company with strategic moves and a focus on AI, integrating technology without building its own models, while leveraging partnerships and acquisitions like Artifact for enhanced services.

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Estimated market influence

Yahoo

Positivesentiment_satisfied
Analyst rating: N/A

Yahoo is undergoing a transformation under CEO Jim Lanzone, focusing on AI and strategic acquisitions to improve its market position.

Apollo Global Management

Apollo Global Management

Positivesentiment_satisfied
Analyst rating: —

Acquired Yahoo in 2021 for $5 billion and provided the leadership needed for turnaround.

Verizon

Verizon

Negativesentiment_dissatisfied
Analyst rating: Buy

Sold Yahoo to Apollo Global Management, marking a shift in management.

AskJeeves

Positivesentiment_satisfied
Analyst rating: N/A

Turnaround led by Jim Lanzone, sold for $1.85 billion.

CBS Interactive

Positivesentiment_satisfied
Analyst rating: N/A

Associated with Jim Lanzone's leadership in digital transformation.

Wagr

Positivesentiment_satisfied
Analyst rating: N/A

Acquired to enhance Yahoo Sports' presence in sports betting.

ESPN

Positivesentiment_satisfied
Analyst rating: N/A

Yahoo Sports leader Ryan Spoon previously worked at ESPN.

Sierra

Neutralsentiment_neutral
Analyst rating: N/A

Partnered with Yahoo for AI technology, no direct financial impact mentioned.

Artifact

Positivesentiment_satisfied
Analyst rating: N/A

Acquired AI-powered news aggregator to revitalize Yahoo's homepage.

Instagram

Neutralsentiment_neutral
Analyst rating: N/A

Founders Kevin Systrom and Mike Krieger sold Artifact to Yahoo.

49ers

Positivesentiment_satisfied
Analyst rating: N/A

Long-term partnership with Yahoo for brand visibility during games.

Context

Analysis of Yahoo's AI Strategy and Market Implications

Executive Strategy

  • CEO Jim Lanzone emphasizes Yahoo is in "building mode" despite its 30-year history of missed opportunities.
  • Lanzone has a proven track record in turnarounds, including AskJeeves ($1.85B sale to IAC) and CBS Interactive.

AI Integration

  • Yahoo is leveraging AI without developing its own language models or investing heavily in infrastructure.
  • Acquired Artifact, an AI-powered news aggregator created by Instagram cofounders Kevin Systrom and Mike Krieger, as the centerpiece of its relaunched homepage.
  • Partners with startups like Sierra for robot customer service agents.

Competitive Landscape

  • Yahoo aims to compete in AI-driven content aggregation and personalization without direct competition with Google or Meta.
  • Focus on niche markets like sports betting (via Wagr acquisition) and leveraging partnerships for scale.

Market Impact

  • Yahoo's pivot to AI positions it as a potential disruptor in the news and content aggregation space.
  • The company has seen improved profitability and audience growth under Lanzone, with claims of the fastest return among Apollo acquisitions.

Long-Term Outlook

  • Yahoo’s future outcomes are tied to three possibilities: acquisition, IPO, or indefinite private ownership.
  • Staying private indefinitely is unlikely, given Apollo's stated commitment to transformation and Lanzone's leadership vision.

Key Metrics and Figures

  • $5B sale of Yahoo to Apollo Global Management in 2021.
  • $1.85B acquisition of AskJeeves by IAC Corp.
  • 30th anniversary of Yahoo in March 2025.
  • Artifact acquisition as a strategic move to enhance Yahoo News.

Regulatory and Industry Implications

  • Potential regulatory scrutiny if Yahoo expands significantly in AI-driven markets.
  • Focus on data privacy and algorithmic transparency could impact future growth.

Conclusion

Yahoo’s strategic focus on AI and partnerships positions it for long-term growth, but its success will depend on execution, market competition, and potential exit strategies.