"History is a wonderful thing, if only it was true"

Wednesday, May 07, 2008

Google zaps MuSoft with Yahoo

I agree with the following, comments below.

Yahoo May Find Victory in Microsoft Deal's Defeat (Google, Microsoft, Yahoo, Time Warner) at SmartMoney.com:

"So I was hopping mad, and felt I had every right to be. I would have taken Microsoft's $33 and been happy to get it. But the more I thought about it, the more I came to believe that Yahoo may have stumbled onto the right course. My indignation has slowly drained way.

It all depends on what Yahoo does now. In my view, it has to abandon harebrained ideas like partnering with Time Warner's (TWX) AOL, and face up to some hard decisions. It should admit that its own search advertising effort has failed and vigorously pursue a relationship with Google (GOOG).

Yahoo made no mention of this in its statement, but clearly Google loomed large in determining the fate of the Microsoft bid. Under the pressure of the unsolicited offer, Yahoo began outsourcing some of its search advertising to Google in what apparently was a highly successful trial. This clearly weighed on Ballmer, and he specifically cited the potential relationship as a deal breaker in a weekend letter to Yang.

A Yahoo-Google search partnership would be the ultimate poison pill to Microsoft, which, should it acquire Yahoo, would never outsource a large chunk of its business to its archrival."

When I ran ads for Earthy.com I'd tried banners then switched to AdWords. I was an early adopter and saw the value vs Yahoo's approach and less effective pay per click (which actually started as go.com then renamed as overture.

This is a brilliant move for Google and Yahoo as well.
Drop loosing model, adapt the winning.

I do use Yahoo for it's finance tools, and believe that it's interface works well for this type of function.
Google for search, Yahoo for set functions.

Starting to use Google tools like "Docs" as well.

Handwriting is on the wall for MuSoft, and I think Steve knows it.

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