Ten years after it incorporated as a company, kicking off what became a multibillion-dollar business, Yahoo Inc. is pursuing a strategy that puts it at odds with its fiercest rival [Google]. These two divergent tacks highlight a debate about how best to capture a growing pool of online advertising.
Under the leadership of Terry Semel, a former movie executive, Yahoo is taking its cue from the entertainment industry. It believes its future largely lies in building the equivalent of online theme parks featuring fantasy sports leagues, music, sites for new TV shows such as “The Apprentice” and other branded content and services. Yahoo wants users to come often and stay a long time so it can put more and more ads on their screens.