Yahoo! Social Networking!

After declaring web of objects, Yahoo Inc now plans to venture into social networking to refurbish its line of products.  Yahoo is looking to acquire companies that will support it to become a bigger player in social networking, as provided by Chief Technology Officer Ari Balogh. He told the Reuters Global Technology Summit that this is the good time for buying. Balogh referred to the valuations the have fallen over the past few months. The giant web company seems all set to revive its fortunes after an unstable period that affected a decline in sales due to recession and competition from Internet heavyweights like Google Inc.

Although no specific names were suggested, Balogh mentioned that Yahoo was negotiating with companies about partnerships and other exciting possibilities. He confirmed over videolink that the company will be doing some stuff in-house.

This fall Yahoo will launch some new products that would all its network of sites to be used more comfortably. Yahoo would go with a head-on strategy for gain after a year of uncertainty in 2008, that saw on on-again and off again deals with Microsoft Corp. Yahoo Inc announced plans to downsize 5 percent of its staff last month. The company has pruned it family of products and services, including shutting Geocites an online community site that it acquired for roughly $4.6 billion in 1999.

The matter of fact is future of Yahoo’s Internet search business seems dwindling and this can be a big spec for the investors. According to the sources, Yahoo CEO, Carol Bartz and Microsoft Chief Executive Steve Ballmer have met about a potential partnership on Web search.
According to Balogh, any decision about a search deal was up to Bartz and Yahoo’s board of directors. Whatever the results, Yahoo will continue to invest in its own search initiatives.