Yahoo in a Pickle
June 24, 2009
27/7 Wall Street published an eye opener called “Why Yahoo! Will Never Recover”. Categorical negatives are absolute and I think “may” might make an equally compelling headline. That’s small potatoes. The meat of this write up was:
Yahoo!’s most important strategic blunder is likely to be the refusal of CEO Bartz to form a search partnership with Microsoft quickly after taking the top job. The industry has known for months that Microsoft was about to launch the next generation of its search product. Bartz and many experts believed that Microsoft did not have the product development and engineering expertise to build a highly competitive search engine. This turned out to be an underestimation of Microsoft’s resolve, its willingness to invest great sums of money on risky ventures, and the prowess of its developers.
You must read the rest of the analysis to assess the impact of this review of Yahoo. The one point that I think warranted more beef was Yahoo’s fragmented technical infrastructure. Yahoo has many problems, and the odds of revitalization of the company are long, long indeed.
Stephen Arnold, June 24, 2009
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