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Nicole Ferraro

Yahoo Moves: Strategic or Insane?

Written by Nicole Ferraro
4/10/2008 7 comments
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A lot has happened, or threatened to happen, since yesterday, surrounding Yahoo's potential merger(s) and its successful attempt to appear as the most-courted damsel on the Internet.

Here's a brief, bulleted rundown for all the list-lovers out there:

  • Google/Yahoo: Yahoo announced yesterday a temporary partnership with Google. This entails a two-week trial period during which Yahoo will carry Google AdSense ads. According to The Wall Street Journal, this is "part of a test that is designed to evaluate the revenue potential of a broader outsourcing arrangement." An arrangement, that is, which would destroy any idea of competition on the Web and drive regulators wild.

Microsoft responded to this in a statement yesterday.

  • News Corp./Microsoft/Yahoo: The New York Times reported today that News Corp. may hop in bed (scandal!) with Microsoft in its bid for Yahoo. This ménage would create a combined monster out of Yahoo, Microsoft's MSN, and News Corps.' MySpace.

  • AOL/Yahoo: The Wall Street Journal reported today that, as some suspected, Yahoo and AOL "are closing in on a deal to combine their Internet operations" in an attempt to thwart the Microsoft bid. Basically, through this partnership, Time Warner would fold its unwanted AOL into Yahoo through a cash investment. In return, it would own 20 percent of the new company. Interesting deal. But doesn't this kind of sound like selling your three-legged dog to a homeless guy? Just sayin'.

There's been some friendly banter taking place on the Internet Evolution message boards this week over whether or not Google is a monopoly at all, after our poll results declared it the "most dominant" monopoly of the current Internet age.

Regardless of your opinion on that (or mine, for that matter), one thing is for certain: Competition is never a bad thing, and a viable Google competitor could only benefit us citizens of the Web (Netizens, if you will).

By (a) teaming up with the sinking ship that is AOL; or (b) forming some sort of alliance with Google -- Yahoo is bailing on those of us who had hoped it would at least put up a good fight against Google in the ad/search space online, and perhaps give us another option for once on the Google-dominated Web.

But, in addition to Web users, Yahoo may be spiting itself as well. If it does reject Microsoft in favor of flirting with its other suitors, and those alliances take the company for a nosedive, Microsoft -- its only saving grace at that point -- could justifiably swoop in with a lower bid. And then, what's a girl to do?

— Nicole Ferraro, Site Editor, Internet Evolution

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IE ENT
Rank: Cave Painter
Tuesday April 22, 2008 1:03:59 PM
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People are needed to get things moving. Being a CEO myself, has me dealing with frustrations and innovations at the same time. Million dollar moves are just that.
Raza
Rank: Cave Painter
Friday April 11, 2008 5:52:27 AM
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Hi Paul,

Personally I do not think that Google should buy Yahoo or mege it. I think that Google is doing good ( if not very good) in web search and web ad domain. 

The  folks at Google would have to estimate the risk Microsoft + Yahoo poses to them.

And I do not think that this alliance would pose big risk to Google's "monopoly" in web  space.

In any case, Google may not want Microsoft to buy Yahoo but it would not want to buy Yahoo ( My opinion)

 

Raza 

Paul Whyte
Researcher
Thursday April 10, 2008 7:18:34 PM
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Hi Nicole,

Why all the love-fest between Google and Yahoo just after the Microsoft's bid? When i read your post i just start wondering if there is some hidden agenda unknowing to the majority of the public. Whilst the popular consensus is that Google is obstructing the deal, there are conspiracy theories making the rounds that both Google and Yahoo are up to something and it is: Google actually wants the deal to take place as it will benefits and Yahoo obviuosly wanted MSFT to increase the bid price. So this new friendship is to provoke MSFT to raise its bid: 

Why Google wants Microsoft to buy Yahoo

Souds like those who believe the 9/11 incident is an in-house operation!!! 

 

Murugan
IQ Crew
Thursday April 10, 2008 3:26:13 PM
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I heard last year that the company was undergoing major internal reorganization.  Consequently, they are going through some shaky times but, they still have an immense number of users that spans across the globe.

Nicole Ferraro
IQ Crew
Thursday April 10, 2008 2:11:16 PM
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Tim, I'm with you. This is all starting to feel very Jerry Springer-esque. I think Yahoo is currently in the process of making itself a few enemies both outside and inside its organization.
Tim Bell
IQ Crew
Thursday April 10, 2008 12:31:44 PM
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Big Picture: It seems as if Yahoo, in attempts to stave off Microsoft, is ripping itself apart.
Murugan
IQ Crew
Thursday April 10, 2008 11:38:44 AM
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It seems that Yahoo! does not want to see further conglomeration of the leading Internet companies thus, creating larger monopolies.

I recommend staying single until a suitable partner is found otherwise, compromising the plethora of services found online would be unfortunate.

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