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Yahoo hits $10.34 a share. It’s over. Here’s what to do.

Isn’t it funny how Yahoo was too good for Microsoft when they were being offered, and subsequently turned down $33 a share?  Isn’t it even funnier that they have now come back begging for ANY offer from Microsoft just so they can stay afloat?

The way this has been going, it’s starting to look more and more like a bad romantic comedy.  So how long before Yahoo shacks up with AOL in some trailer home?  Seriously though, this is really starting to get sad.  Basically with the economy the way it is, no one wants anything to do with the sinking ship that is Yahoo.  And with no real direction or plan,  Yahoo is going to find it extremely difficult to survive on their own.

Personally, though I don’t use much in the way of Yahoo services besides Flickr,  I’d hate to see them go.  They were one of the first Web companies to really hit it big back in the Web 1.0 days, and one of the first web companies to really gather any sort of real brand awareness.  Also, there isn’t anything all that terrible about ANYTHING that they are doing.  That’s what makes this whole situation so sad for them.  Yahoo mail is good, Yahoo search is okay, Flickr is fantastic, Yahoo Buzz is a great site, and the new redesign of the Yahoo homepage that is currently in beta testing is nothing short of fantastic, and when released will likely become my browser homepage.

So what can Yahoo do to save themselves from the Tech Bust 2.0?  Simple.  Find out after the jump:

First, Get rid of Jerry Yang.

Jerry Yang may have created Yahoo.  But he is far from a brilliant business mind.  Yahoo needs a polarizing, charismatic, and all around SMART person who will be willing to cut thousands of jobs, cut services that are underperforming, and cede the search industry to google.  Regardless of the fact that Yahoo was built on search, they have no chance of ever catching Google now,  and their other services are far more widely used than Yahoo search.  When was the last time YOU went to yahoo.com to look something up?  Have you told someone to Yahoo that lately?  I think not.  Search isn’t important for them.  The network of sites they have built IS.  So that new leader whoever it is, should immediately CULL any sites in the network that are underperforming.  If it isn’t necessary for survival, get rid of it.  A few that come to mind?  Hotjobs, Yahoo Groups, OMG!, Yahoo Personals, Shine, GEOCITIES .  And that is just a quick look through the list of dozens upon dozens of Yahoo sites.  Yahoo could cull half of the network, and I think only 20-30 people would notice.

As of today, This is the current list of Yahoo Products:

So once that’s done,  take the money you’ve just saved from killing network sites that no one cares about, to invest and improve the ones that people DO care about.  Put your money into Yahoo Mail, Yahoo Calendars, Delicious,  Flickr,  Alibaba,  your mobile offerings.  Compete where you still have influence.

Apple is a good model for success here.  Before Steve Jobs returned to Apple, the computer lineup was a mess.  Model numbers that didn’t mean anything.  Dozens of devices that overlapped each other, no clear cut path to success.  Steve came back, and with the help of a brilliant staff of people, culled the line to utter simplicity.  An all in one,  a laptop, a pro desktop, and a pro laptop.  That was it.  Of course the iPod and iPhone came later, but they decided to focus on a few GREAT products instead of having a ton of mediocre ones.

Finally, there is one way that Yahoo could return to it’s former profitability in less than a day.

Sell the search to Google.

Blasphemy I know.  But think about it.  How much would Google pay to have the ENTIRE search business of Yahoo’s network.  I’d bet quite a bit.  Replace the Search bar on the Yahoo main page and any other Yahoo networked sites with a Google search, and you’ve returned to profitability in a single day.  Some people would argue that Yahoo should stay in the search business.  They’re only number 2 after all.  They could improve.  Right?  Wrong.  Google has become a household name when it comes to search.  When you have a cut you don’t get an adhesive bandage.  You get a Band-Aid.   When you are looking for something online, you don’t go to a search engine,  you Google it.    They are way too far ahead,  and pulling away.  Why fight a costly battle that can’t be won.  Move on to where you can compete.  Get out of the search business.

Ok so lets recap.  Oust Jerry Yang.  Cut out ALL non-essential personnel and services, put money into improving the services that DO make money.  Sell the search to Google.  Live long and prosper.

Got it Yahoo?  Ok get to work.