Between Yahoo! and CNET, I wonder if 2008’s storyline is: stay private, maintain control?
CNET will reduce costs, sure, but turns out the layoffs will also hurt revenues. Now is the time to be investing in digital, not scaling back. The companies that invested throughout 2001-04 ended up strengthening their hands… those who scaled back paid big time.
Ultimately, I think one undeniable lesson is be careful how much control you lose for the sake of growth. CNET and Yahoo! are Web 1.0 pioneers who obviously would not have had their histories without raising capital, going public etc., but if they are now in the position they are in, it’s because they lost control and became vulnerable.
It’s great to grow like crazy overnight, but is it really worthwhile if it means you are suddenly on the outside looking in? I don’t know the answer to that question, but it’s worth asking.
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