To: Bill Wexler who wrote (4024 ) 12/9/1997 8:33:00 PM From: Dylan Respond to of 27307
Yahoo bought 411 to increase the quality of its brand. They may have paid too much, but they probably didn't have the means to quickly set up an email system. They want users to use their site for as many things as possible. I know this is the whole land grab garbage that you've all been talking about somewhat seriously, but I think that Yahoo knows that the only way it will become profitable is if they get users to their site and keep them there. The best way to do this is through web based email accounts. Web based email is great because you can access it from anywhere without having to telnet like you would on a unix based system. Email is the number one use for the internet, and web based email also provides an alternative to the accounts many have at work or school where there are concerns regarding bosses and system operators reading your messages. I feel that Yahoo has its large interest income base to cover the cost of such acquisitions which they known aren't immediately profitable. They know they won't make money off of 411 for awhile (if ever), but if they didn't offer email, somebody else would and would point out that they offer it and Yahoo doesn't. I seem to remember, though, that 411 was going to start charging 4.95 a month for email before they were bought by Yahoo. AOL is the most annoying interface I have used. There are constant pop-up advertisements. They claim that people spend twice as much time on the net as a year ago, but that's because they are stuck looking at their stupid pop up ads!! And email messages are not saved for long after you read them unless you download them to your hard drive. As ISP's become easier to use and set-up for the average joe, many people will leave AOL and use Yahoo (or others) because it offers a similar type of environment for free. And Yahoo and other companies are paying ISP's to be the home page on the browser. Many people don't know how to change the home page, and so will start at Yahoo every time they visit the net. I am not saying I think Yahoo is a worthwhile investment (I've been on the sidelines for awhile now), but I think that what they are doing makes more sense than some are saying. -Dylan