Stop Yahoo! Before It Kills Again

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The eviction notices are going out. Yahoo! (Nasdaq: YHOO) is telling GeoCities users to hit the road.

"After October 26, your GeoCities files will be deleted from our servers, and will not be recoverable," Yahoo! warns, urging content creators of the free, ad-supported Web-hosting site to pack up their pages.

The coming of the wrecking ball isn't a surprise. Yahoo! made its decision to kill GeoCities six months ago. It was a dumb decision then, and it's even dumber now.

A lot has happened over the past six months that could have made Yahoo! reconsider razing its online neighborhoods:

  • After agreeing to hand over its paid-search business to Microsoft (Nasdaq: MSFT), display advertising will be Yahoo!'s primary focus. As amateurish as many of the GeoCities pages are, we're still talking about a ton of pages that Yahoo! could slap brand-marketing ads on. Why zap the servers?
  • Yahoo!'s new "It's You" marketing campaign is emphasizing its ability to deliver personalized online experiences. Feel the irony? You're soaking in it. Even as it's celebrating self-expression, Yahoo! is killing what may be its truest platform for individuality.
  • Yahoo! Mail is finally cashing in on its "dormant social network" status by tweaking its leading free email platform. It's also hoping to ride Twitter's microblogging wave with Yahoo! meme. But it's not easy to sway visitors to invest time and effort in a new platform if they see a dead end waiting down the road.

Storage and bandwidth get cheaper as time goes by. Examples in the past year include the new hosting offers from such companies as Amazon.com (Nasdaq: AMZN) and Rackspace (NYSE: RAX).Why is GeoCities going away? If Yahoo!'s willing to keep that cobwebbed email message that's been sitting in your Yahoo! Mail account since 2002, why is it killing pages that actually receive outside traffic that can be monetized?

Yahoo! is trying to convince GeoCities refugees to upgrade to its premium hosting platform, which it operates in cahoots with AT&T (NYSE: T). That upsell offer represents Yahoo!'s final attempt to milk something out of the $3.6 billion it spent on the site a decade ago. But the stuff on GeoCities consists mostly of hobbyist pages. They're not about to start paying $60 a year to host their Pokemon card collections or Harry Potter fan fiction.

We've seen this movie before. Homestead.com used to be another popular community of free hosted pages. It now belongs to Intuit (Nasdaq: INTU), with sites starting at $4.99 a month. Tripod.com is another Lycos-owned darling from the 1990s. It's still around, but not as prolific as it used to be.

Yahoo! is wrong to shut down GeoCities down, and there's really no excuse for it to obliterate more than a decade's worth of user-created content, either. At least keep that going, Yahoo! Show the social-media world that you're not heartless.

Or brain dead.

What were your GeoCities experiences over the years? Wax nostalgic in the comment box below.

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Longtime Fool contributor Rick Munarriz wonders what the rest of the world thinks of Yahoo! He owns no shares in any of the stocks in this story and 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.

  • Report this Comment On October 08, 2009, at 2:30 PM, badstink wrote:

    Rick,

    You're such a whiner. I'll send you an e-hanky so you can wipe away your tears.

  • Report this Comment On October 08, 2009, at 2:31 PM, laethyn wrote:

    While I agree with most points, there is the Yahoo! SmallBusiness group that geocities users can migrate their files to.

  • Report this Comment On October 08, 2009, at 4:23 PM, noirblood wrote:

    1. Yahoo! is trying to sell Yahoo! Small Business also, so I'm sure they want to get as many people signed up there as possible asap to increase its value.

    2. Yahoo! needs to kill these fringe sites because they make Yahoo! look archaic, because they do not devote resources to it or overhaul anything on Geocities. Chop off the withered parts and the whole thing looks prettier.

    3. You really think advertisers want their ads being served on a crappy looking page hosting someone's Pokemon collection? Who is going to visit that other than the owner of the site? Who wants to target an audience of one, unless you're selling Pokemon cards?

    4. Anyone with a Geocities page can download all of the files that make up their page and rehost it anywhere else on the web. Do you ever "browse" Geocities looking for random content? I doubt it. If people feel like they have something they want to keep up, they can do it at any number of free hosting sites.

    At the end of the day, the questions are: Does Geocities make Yahoo! a better company financially? Does Geocities actually appeal to the average Yahoo! user? Or is it just nostalgic for people who used it to create their first website?

    If you ever want Yahoo! to become what it can, the first thing they need to do is streamline and take the remaining properties and modernize and grow them. Don't think its right at all to expect them to keep paying for something that is losing them money and if anything makes them look more old-fashioned.

  • Report this Comment On October 26, 2009, at 6:04 PM, WoodyDog1400 wrote:

    Noirblood, I liked your article more than the original, very valid points.... Rick, you really should not write on tech stocks, you miss SIRI big time and just missed YHOO. I recommend you write about Pokeman instead... I heard Geocities is hiring.

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