Sale of properties? Layoffs? All of the above? I haven't read the report, but what would be the point to continue with an ad based business model? It makes no sense. Icahn is in it for the breakup and the sale of its properties - nothing else. And it will happen. This business model in 2012-2013 won't grow and can no longer scale to support past growth. What you will see is the dismantling of the company. This is actually an Icahn lesson. How he thinks and saw this coming.
just read the announcement,whats missing is that the co is going out of buisiness.ichans not breaking this up,its too late for that.stock is on its way to the single digits as i said it would be 2 mos ago,the bad news plus the mkt collapse in the fall will take care of that.read the comments about cos changing their marketing plans.thats the the size 18 shoe,glad i am short by a couple of contracts.i expect the price after the earnings to be close to 10.i cant believe there are any shareholders not insiders or holders for decades,that could mean delisting remember 400 and they cant be related,or insiders.
Think about the amount of advertising that will need to happen to offset the losses. It's not going happen.
Then think about the cost of acquisition for the professional side. And the marketing costs that keep growing as they try arbitrage the traffic so they can still sell the ad space if someone comes knocking. (But they aren't) It will take 2 years for this old fashioned business to just break even. And what will be the state of the internet and economy in 2 years? Who knows - that's the foolish risk you would be taking if you decided to buy into this sinking ship.