Yahoo has rapidly become the most important e-content company on the web. Pulled from the ashes just a few years ago, Yahoo today is the #1 destination site on the web. While Google has gotten the bulk of the recent headlines, Yahoo's Overture is a more diversified advertising vehicle, providing brand advertising, outsourced search and contextual advertising, in addition to advertising on Yahoo's own sites. Another 20% of Yahoo's $821M revenues come from services, including personal ads, job classifieds, sales of music, shopping and more.
While Google has risen to the top through technology, Yahoo is clearly focused on a more traditional content path, developing proprietary content and striking licensing deals with major news and content providers. The recent investment in China's Alibaba give it a strong position in China in the web's two largest e-businesses - search and auctions. Think of a combined Google and EBay - that's what Yahoo could have in China through this investment. Yahoo paid a huge premium for its investment, but with the anticipated growth of the web in China over the next 5-10 years, Yahoo is clearly well-positioned.
Through its diversified revenue streams and push into international markets, Yahoo is probably best positioned among major e-content companies to navigate whatever changes arise in the coming years.