Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Yahoo Inc. (YHOO - Analyst Report) has announced a content and promotional deal with NBC Sports Group, in line with its strategy of striking content-sharing deals with major media brands. The financial terms of the deal were not disclosed.

NBC Sports is the sports division of the NBC television network. The group broadcasts premier sporting events and a diverse array of programs, including the Olympic Games, the NFL, the NHL, MLS, Notre Dame football, the PGA Tour, the Triple Crown, and the French Open, among others.

Per the deal, Yahoo! Sports, which broadcasts premium sports news and events will be integrated into NBC Sports Group, expanding the company’s digital assets. Yahoo’s fantasy sports pages and its sites like Rivals.com, which focuses on college recruiting, will also be promoted on the NBC network. Additionally, Yahoo! Sports will be linked to live streams of NBC sports broadcasts and develop web shows with NBC that will appear on both websites.

However, the two sites will continue to be independent and maintain separate newsrooms and editorial control over their respective content. But they will collaborate on major sporting events on both television and the web, thus increasing visibility for each other with minimal investment.

The partnership is expected to benefit both companies over the long term. The alliance will broaden the reach of both the companies going forward. According to comScore, Yahoo! Sports came in second to ESPN in November rankings with approximately 40 million online users while ESPN had 42 million visitors. However, during the same month, NBC had only 11 million unique visitors, which put it into the #8 position. Both the companies expect that their traffic will be measured together, which will make them the No. 1 sports website in the United States.

Good content is vital for a company serving ads as the number of users it attracts is directly proportional to the ad revenue it generates. We believe that Yahoo will continue to pursue this kind of content sharing deals in order to boost its online user base going forward.

Yahoo already has a number of content sharing deals with companies like CNBC, Walt Disney’s (DIS - Analyst Report) ABC Television Group, Spotify and Clear Channel. Though its new CEO, Marissa Mayer is focusing more on the company’s product developments, this partnership clearly indicates that Marissa is not ignoring other growth areas and is looking to protect Yahoo’s share in the display and video ad market.

Yahoo has come out with better-than-expected third quarter results with non-GAAP earnings up sequentially as well as year over year and exceeding the consensus estimate by 11 cents. However, a turnaround in the company’s business still remains a big task for the new CEO, given Yahoo’s declining position in display and search and the monetization issues related to Microsoft’s search platform. Yahoo also lags in several emerging segments, such as mobile, social and the cloud.

Currently, Yahoo has a Zacks Rank #3 (Hold). We note that its archrivals, Google and Microsoft Corp. (MSFT - Analyst Report) also carry a Zacks Rank #3 (Hold) while Facebook Inc. (FB - Analyst Report) carries a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%
INTERNATIONA ICAGY 33.30 +5.38%