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Article

Title: Yahoo Buys Online Video Firm, Starts Layoffs

Author: Kopytoff, Verne Article Type: Company
Source: San Francisco Chronicle, pC1(2) Publication Date: Feb 13, 2008
URL of Publication: http://www.sfgate.com

Yahoo! Inc. revealed that it is acquiring Maven Networks Inc., an online video company, and laying off 1000 employees. Yahoo! recently rejected a takeover bid by Microsoft Corp. but continues to face the both the need to cut costs and producing faster growth. The lay-offs will affect a cross section of the company but Yahoo! claims the cuts will not come in areas that support our critical growth initiatives. The cuts, which amount to 7 percent of Yahoo!s workforce, are intended to lift the companys shares from a four-year low. Maven Networks helps websites add online video and insert advertising into those clips, services that are expected to be a major growth area, with spending online video advertising rising from $1.4 billion this year to $4.3 billion in 2011. Yahoo! is currently well behind competitor and owner of YouTube, Google Inc. in the online video advertising market. Yahoo! also revealed plans to upgrade its mobile phone software to allow people to keep in better touch with those in their social networks. Analysts continue to believe that an acquisition by Microsoft will go forward despite Yahoo!s efforts to shore up its business.

Companies:
Google Inc Maven Networks Inc
Microsoft Corp Yahoo! Inc
YouTube Inc

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