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Yahoo! Inc., a Web portal firm, wants to stand out from its pack of rival Internet firms by focusing on social media. With social media, users share photos, bookmarks, and expertise about specific topics, among other things. The strategy seeks to improve Yahoo!'s position among its competitors, mainly Google Inc. Yahoo! has made a number of social media acquisitions. In 2005, it purchased Flickr, a photo-sharing site, del.icio.us, a bookmark-sharing site, and Upcoming.org, a community events calendar site. Yahoo! has also developed some of its own social features, including Yahoo! Answers, a place where users can ask each other about general topics. Yahoo! hopes that it will give its users better information by adding a human element and that these users will stay on the site longer. Additionally, user-generated content is frequently categorized by its creators with tags, so that search results including user-generated materials are more relevant. Algorithms are good for finding facts but not are returning links for subjective queries, according to Charlene Li, analyst with Forrester Research. This is where user-generated content comes in. Yahoo!'s entry into social media is expected to appeal to younger users who are not afraid to share information with strangers online, says Jordan Rohan, analyst for RBC Capital Markets. Because Yahoo! has such a large user base and is taking the lead in social media, it could outshine Google in this area.
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