Yahoo! Sells Kelkoo*

            


Details


Case Code : CLBS053
Publication date : 2008
Subject : Business Strategy
Industry : IT, Retail Industry
Length : 05 Pages
Price : Rs. 100

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Key words:

Yahoo, Kelkoo, online shopping, price comparison, Search engine, Mirosoft, Google, business strategy

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


 

 


Abstract:
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In November 2008, Yahoo! Inc. sold its price comparison shopping service Kelkoo at a big loss, as a part of its efforts to restructure its businesses. The case talks about the reasons why Yahoo purchased Kelkoo and the factors that contributed to its eventual sale. The case also talks about the reactions of industry observers to the sale.

Issues:

  Business Restructuring.
  Online shopping business.

Introduction

On November 21, 2008 Yahoo! Inc (Yahoo) sold its European price comparison shopping service , Kelkoo, to a private British equity firm named Jamplant Ltd. Yahoo did not disclose the sale price figure, but Pierre Chappaz (Chappaz), the founder and ex-CEO of Kelkoo, claimed on his French blog that the figure was about EUR 100 million (US $126 million)...


Questions for Discussion:

1. Do you think Yahoo's decision to sell Kelkoo was a wise one, especially at a time when it had a host of problems? What do you think was the major reason for the sale of Kelkoo? Was Yahoo doing the right thing, considering that Kelkoo was not loss-making and there were other players who were quite keen on the price comparison space?

2. Do you think that there is scope for future growth of Kelkoo, considering the conditions in the price comparison space? Were the expectations of Microsoft and Kelkoo for growth in this space valid?





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