Re:Yahoo to Spin Off Its Core Businesses
by christophilus on Wednesday December 09, 2015 @09:24AM
(#10703728)
I think he's saying search itself runs as a loss-leader to get people into their hugely profitable AdWords product. In other words, they spend money in search in order to make money via ads. But yeah. The two go hand in hand, so I'm not sure I'd say search is a loss-leader.
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Re:Yahoo to Spin Off Its Core Businesses
by morgante on Thursday December 10, 2015 @01:47AM
(#10709247)
Apologies for taking so long to reply. I've seemingly been banned from replying.
I'll just say that's a convoluted definition of a loss-leader. If a revenue line requires an expense, that expense is not a loss-leader, it's just a cost. That's like saying that having a website is a loss-leader for Amazon, since they really make their money on selling products.