Brand on the Run at Yahoo!

Recs

10

Hoping to become a bigger hub in the realm of entertainment, Yahoo! (Nasdaq: YHOO) is gearing up to launch roughly 100 different sites centered around specific properties. Brand Universe is the name of the new initiative.

Like its recently launched Nintendo Wii site at wii.yahoo.com, the plan is to take popular properties like Harry Potter and NBC's The Office and turn them into standalone fan sites. Yes, Yahoo! has already harnessed the power of passionate communities through Yahoo! Groups, but Brand Universe is looking to provide a slicker property-specific interface and not rely exclusively on the content-creating prowess of its users.

Yahoo! launched sites last year dedicated to tech and food. Narrowing the focus makes sense on paper, but let's not deny the actual property owners the right to cash in on their handiwork.

General Electric's (NYSE: GE) NBC has been wondering why a site like News Corp.'s (NYSE: NWS) MySpace has been so successful in amassing a community around The Office when it's the one running the show. NBC is apparently rolling out social networking sites to serve as hubs for its biggest shows. Between NBC, MySpace, and countless unofficial fan sites out there dedicated to The Office, do we really need another virtual Dunder-Mifflin?

Traffic on the Yahoo! Wii message board has been lackluster. Gamers know that they can turn to Nintendo as an official source or more seasoned video game sites like CNET's (Nasdaq: CNET) Gamespot or News Corp.'s IGN. Even Amazon.com (Nasdaq: AMZN) has more lively Wii discussion board threads taking place on its product pages than you will find at Yahoo!'s Wii site.

So is Yahoo! barking up the wrong tree? Well, at least it's barking, you know. Until we see more of what these sites look like, it's hard to grade Yahoo! here. Even if most of the sites wind up being cobwebbed communities, a few hits is all that the company really needs. It already has the ability to serve as a third-party aggregator, an established discussion board platform, and the Yahoo! Answers Q&A sensation that it is already using to help feed content into its food and Wii sites.

I certainly hope that Yahoo! has something up its sleeve to bring something new to the table, but at least it's showing up at the table.

Yahoo! and Amazon.com are active recommendations for Stock Advisor subscribers. To see all the reasons why, take a free 30-day trial to the market-crushing newsletter today.

CNET is a Rule Breakers newsletter pick.

Longtime Fool contributor Rick Munarriz is a fan of Yahoo! and loves his Wii but doesn't see himself checking back on the Yahoo! Wii site anytime soon. He does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 520970, ~/Articles/ArticleHandler.aspx, 11/10/2009 2:12:11 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
Health-Care Reform: A Tale of Two Chambers

Related Tickers

11/9/2009 4:02 PM
GE $15.85 Up +0.52 +3.39%
General Electric C… CAPS Rating: ****
AMZN $126.67 Up +0.47 +0.37%
Amazon.com, Inc. CAPS Rating: **
CNET $11.49 Down +0.00 +0.00%
CNET Networks, Inc… CAPS Rating: ****
NWS $14.60 Up +0.45 +3.18%
News Corp CAPS Rating: ***
YHOO $16.02 Up +0.08 +0.50%
Yahoo!, Inc. CAPS Rating: **

Community: Investing Wiki

Term Of The Hour

Enterprise value: Enterprise value is the value of a company, incorporating equity, debt, and cash. It is essentially a way of measuring what it would cost to buy the company. Also often called total enterprise value (TEV).

Want to learn more or edit this definition?
Click here to read more!