CNET announced today that their share of e-commerce was $80 million for the holidays, for which they collect a referral fee. This is effectively Snap, which I believe has been doing quite well, generally speaking. So what was YooHoo's. Let's say it was $200 million. Seems conservative to me given that the e-commerce godzilla Amazon had a paltry $250 million. Stodgy retailer Trans World Music had the same as Amazon. Wal-Mart has the same as Amazon during every 5 hour period. Oops, I keep getting off point. Sorry.
So Yahoo is at $200 million. Lets assume every transaction was for $33. Seems reasonable. That means that 6 million transactions took place thanks to Yahoo. Lets also assume that only i1 in 4 click throughs ended in sales. That would be 24 million slick throughs. At 25 cents per pop, that is a respectable $6 million in revenue. Add to that $200 per store (what 1,000 stores), equals a meaningless $200K. Total = $6.2 million. Curiously this about the same amount that the Japanese pump in each quarter.
If the $6.2 is taxed at 25%, it becomes about $4.6, and equates to $0.04 per share. Add this to the dwindling banner add component, and you have a very nice quaint business. World killer, no. Life changer, no. Free, yes. Quaint, yes.
Just more musings from your friend,
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