Yahoo 2006 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2006 Yahoo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 126

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126

Part I
Item 1. Business
Yahoo! Inc., together with its consolidated subsidiaries (“Yahoo!”, the “Company”, “our”, “we”, or “us”), is a
leading global Internet brand and one of the most trafficked Internet destinations worldwide. Our mission is to
connect people to their passions, their communities, and the world’s knowledge. We seek to provide Internet
services that are essential and relevant to our global audience of users and our advertisers.
To our global audience of users, we provide our owned and operated online properties and services (the “Yahoo!
Properties”). To our advertisers, we provide a range of tools and marketing solutions designed to enable businesses
to reach our users. We focus on expanding our audience of users and deepening their engagement on the Yahoo!
Properties to enhance the value of our audience of users to advertisers and to increase the spending of these
advertisers. We believe that we can expand our audience of users by offering compelling Internet services and
effectively integrating search, community, personalization, and content to create a powerful user experience. These
user relationships and the social community they create enable us to leverage our online advertising as well as our
fee based services.
We also focus on extending our marketing platform and access to Internet users beyond the Yahoo! Properties
through our distribution network of third party entities (which we refer to as “affiliates”) who have integrated our
search and/or display advertising offerings into their websites.
Many of our services are free to our users. We generate revenue by providing marketing services to businesses
across the majority of our properties and by establishing paying relationships with users of our premium offerings.
We classify these revenues as either marketing services or fees. Our offerings to users and businesses currently fall
into five categories — Search; Marketplace; Information and Entertainment; Communications, Communities and
Front Doors; and Connected Life. The majority of our offerings are available globally in more than 20 languages.
Yahoo! was developed and first made available in 1994 by our founders, David Filo and Jerry Yang, while they were
graduate students at Stanford University. We were incorporated in 1995 and are a Delaware corporation. We are
headquartered in Sunnyvale, California, and have offices in more than 20 markets globally.
In December 2006, we announced a reorganization of our structure and management to align our operations with
our key customer groups. Under the new structure, we will have two customer-focused groups: the Audience Group
and the Advertiser & Publisher Group. Each of these groups will be supported by the Technology Group. We
believe having a more customer-focused organization, supported by robust technology, will speed the development
of leading-edge offerings for our most valuable audience segments and the provision of marketing services to our
advertisers. This reorganization is expected to be completed by the end of the first quarter of 2007.
2006 HIGHLIGHTS
The following are some of our key accomplishments during 2006 directed at furthering our objective of providing
essential and relevant Internet services to users and advertisers:
Established new alliances and partnerships:
• Formed a strategic partnership with Seven Network Limited, a leading media company in Australia, to combine
our Australian Internet business with their rich media and entertainment content to create what we believe will be
one of the most comprehensive and engaging online experiences for local users and advertisers.
• Combined our U.S. Hispanic business with Telemundo, a U.S. Spanish-language television network, creating a
platform for advertisers to reach a large and engaged U.S. Hispanic audience.
• Entered into an agreement with Hewlett Packard Company to deliver Yahoo! services including Yahoo! Front
Page, Yahoo! Search and a co-branded toolbar on HP’s consumer personal computers in the U.S. and Europe.
• Entered into an agreement with Acer Inc. to deliver Yahoo! services including Yahoo! Search, a co-branded
Yahoo! Front page and toolbar on Acer’s consumer personal computers worldwide.
3