Are Yahoo! Investors Hitting the ‘Like’ Button?

Yahoo! Inc. (NASDAQ:YHOO) is hoping that its new interim chief executive officer can help move the company forward by focusing on media content and advertising dollars.

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The company ousted Scott Thompson and Carol Bartz before promoting Ross Levinsohn to the CEO position. Levinsohn’s past is not in technology, like his predecessors, but instead rooted deeply in media, with stints managing internet operations at both CBS Corp. (NYSE:CBS) and News Corp. (NASDAQ:NWSA). Many believe that under Levinsohn, the company will begin to think and operate as more of a media company than a technology company.

The path for improvement is clearer now that the company has handled two of its largest conflicts: a dispute with activist shareholder Daniel Loeb that was settled by awarding Loeb three board seats, and the final resolution to an ongoing battle between Yahoo and Alibaba Group, which resulted in Yahoo selling back half of its stake for $7 billion to the Chinese e-commerce company.

Yahoo will be looking to make up advertising ground lost to competitors including Google Inc. (NASDAQ:GOOG) and Facebook Inc. (NASDAQ:FB). According to sources close to the company, Levinsohn will be looking to recoup revenues through video advertising, an untapped market that currently makes up only 6.3 percent of the U.S. market but is growing at a rate of 50 percent annually.

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