Yahoo! is coming under increasing pressure to invest in more social networking as internet users move to sites such as MySpace and YouTube, according to analysts.
Yahoo! could potentially be interested in bidding for Facebook, a smaller rival to MySpace.
The pressure on Yahoo! follows the acquisition by Google of YouTube, the video sharing website, for $1.65 billion (see Google Acquires YouTube For $1.65 Billion).
In a conference call made last week, Yahoo! chief executive Terry Semel said: “We believe now is the time to make investments in new audiences and new ways to engage them to ultimately build new revenue opportunities.
“We plan to further invest, evaluate and secure leading positions in the areas where we see the biggest growth opportunities in social media, video, and mobile access.
“Clearly some new players have emerged in these areas that have attracted a lot of attention.”
Last week, Yahoo! announced their third quarter results, recording a 19% year on year rise in revenue, although Semel calling them unsatisfactory (see Yahoo! Announces Q3 Results).
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