Could this be the beginning of the end for Yahoo? Yahoo's interest in a search deal with Google was initially viewed as a poison pill move to thwart efforts of Microsoft to acquire Yahoo. I certainly saw it that way as did many others. Yahoo has continued down this path, announcing a deal with Google late Thursday afternoon. The deal basically outsources Yahoo's search ad placement to Google AdSense. Hey, I use AdSense on my personal blog, so why shouldn't Yahoo! The more the merrier I always say.
The big winner here is Google. Google gets a very large ad revenue opportunity, and they get a significant competitor to outsource parts of the money making end of Yahoo's search business, the ad revenues. It's a huge win for Google AdSense. There's also signs of more partnering, now and down the road. Google and Yahoo will work together to make the instant messaging products work together. Both IM services have a pretty significant following, and the interoperability makes it easier to reach a broader base of customers.
The real question here is just where is Yahoo's strategy headed now? Jerry Yang says this doesn't mean Yahoo is exiting the search business, but rather is moving into the era of converged search and display... "the next big opportunity in the rapidly growing online ad industry" according to Jerry Yang's blog post about the announcement. Isn't that what Google already does? So, Yahoo is "moving full speed ahead to execute with speed, commitment, and passion" into outsourcing Yahoo's ad display into Google's core competency?
Maybe what this deal really represents is that Google and Yahoo are testing the waters with the SEC about a combined Google + Yahoo merger down the road. Honestly, other than Yahoo laying down their weapons in ad display and giving us the white flag of surrender, that's the only way this deal makes sense long term. We most likely are watching the beginning of the end of Yahoo.
Like this? Here are some of Mitchell's recent posts.
Apple User Resents Missing iPhone Features
iPhone 2.0 Upgrade Will Backfire On Apple
iPhone 3G Overshadows MobileMe SaaS
Gates; Ruthless, Dominance and Respect
iPhone 3G Plays Catch Up
Blueprints for Microsoft Software-plus-Services
Product Reviews:
Microsoft Live Mesh Google App Engine
LiveNewsCameras.com Xobni Outlook pluginRock Star jobs in SaaS: SaaS Jobs
Recent Converging Network Blog Posts:
Get Ready For XaaS Everywhere
Unbelievably Bad Web Password Security
Back From Hiatus, Saved by Web 2.0 Technology
It Takes a Village.. ah, actually, being there first and tons of hard workFavorite Book Recommendations:
The Big Switch
Zero Day Attack
Clear BloggingCheck out Mitchell's
Converging On Microsoft Podcast. Current Podcast Episode: Security Mike Gets Serious About SecurityAlso visit Mitchell's personal blog The Converging Network and SSAATY Security Podcast.
Visit Microsoft Subnet for more news, blogs, opinion from around the Web.
Sign up for the bi-weekly Microsoft newsletter. (Click on News/Microsoft News Alert.)
Mitchell Ashley is CEO and Chief Strategist of Converging Network, LLC, providing product and technology strategies to emerging technology companies. A serial entrepreneur, Mitchell has created many successful products and services in the networking, security, convergence, Internet and IT industries. In addition to blogging for NetworkWorld, Mitchell regularly blogs at TheConvergingNetwork and co-hosts the widely popular Still Crazy After All These Years podcast.
|
|
