) has announced a partnership with Dropbox to integrate the cloud
storage service into Yahoo! Mail.
Dropbox is a file backup service operated by Dropbox, Inc.
that offers cloud-based file management, storage systems and
client software. It enables users to access and synchronize files
and use applications through multiple devices.
Dropbox allows users to create a special folder on their
computers, which it then synchronizes for viewing on any
computer. Files placed in this folder are also accessible through
a website and mobile phone applications.
Dropbox provides client software for Microsoft Windows, Mac OS
X, Linux, Android, iOS, BlackBerry OS and web browsers, as well
as unofficial ports to Symbian, Windows Phone and MeeGo.
The integration will make it easier to send, receive and
manage attachments in Yahoo! Mail. The service will allow users
to share and store files more easily without any file size
limits. The partnership will enhance Yahoo! Mail's functionality
and hence improve user experience.
The new partnership with Dropbox comes after CEO Marissa Mayer
announced a newer version of Yahoo! Mail last December. Mayer is
undertaking continuous efforts to revamp Yahoo's languishing
collection of websites and apps. Recently, the company announced
the redesigning of its home page with an intention to make it
more attractive to users.
Yahoo was one of the earliest players in instant messaging and
online news aggregation and dominated search and email. But it
has gradually lost its leadership to
). Yahoo! Mail is still the third most-used mail service in the
world behind Hotmail and Gmail.
As per a report by comScore, Yahoo has been seeing declining
traffic on all of its three major revenue earning portals: Yahoo
Mail, search and the homepage. In Nov and Dec 2012, search
revenues were down 28% and 24%, respectively while mail revenues
dropped a respective 16% and 12%. Monthly unique visitors to the
home page declined 17% in November but rose 4% in Dec 2012.
As per a report by comScore, Google sites in the U.S. alone
have 67.5% market share followed by Microsoft, which has 16.7%.
As of Feb 2013, Yahoo had 11.6% market share. Thus, reclaiming
lost ground will be difficult for Yahoo.
Yahoo Mail is also likely to be challenged by the world's
largest software maker, Microsoft (
), which has started Outlook.com, a free email service. Microsoft
will be moving existing Hotmail users to outlook.com along with
their hotmail.com email addresses and passwords.
In the last concluded fourth quarter, the company performed
well with revenues of $1.35 billion, up 12.0% sequentially and
1.6% year over year. Traffic acquisition cost (TAC) was up 10.8%
sequentially while declining19.6% from last year. Excluding these
costs in all periods, net revenue was up 12.1% on a sequential
basis and 4.5% from last year.
However, Yahoo still has a huge task at hand as it attempts to
bring back its users and make them spend more time on its
properties. If successful, Yahoo may reclaim some of its lost
market share going forward.
Yahoo has a Zacks Rank #3 (Hold).
), which carries a Zacks Rank #2 (Buy), is also performing well
and is therefore worth considering.
GOOGLE INC-CL A (GOOG): Free Stock Analysis
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