Microsoft and Yahoo Redo
October 30, 2009
I read “Microsoft and Yahoo Delay Signing Search Deal” and heard Yogi Berra say, “It’s déjà vu all over again”. Why am I not surprised. The post deal melt down deal involved no cash but lots of “goodwill”. How did Silicon Alley Insider learn about the “delay”? Yahoo disclosed this item in an SEC filing. Hmmm. Subtle on Yahoo’s part but not sufficiently subtle for Nicholas Carlson, who noticed the item. He wrote:
We reached out to Yahoo and got back a statement that sounds almost exactly like the SEC filing: “’Microsoft and Yahoo! are committed to this agreement and believe this is a highly competitive deal that is good for consumers, advertisers and publishers. We have made good progress in finalizing the definitive agreements. Given the complex nature of this transaction there remain some issues that need some additional clarity and definitive details. So, the teams at Yahoo! and Microsoft are continuing to work on the remaining details, and we have mutually agreed to extend the period to negotiate and execute the agreement. We plan to do this as expeditiously as possible. Both companies are optimistic that we will be able to close this deal by early 2010.’”
Actions speak louder than words. Top line revenue growth or the lack thereof speak even more loudly. Google must be giggling in the Googleplex. With each day that passes, the gap between Google and its competitors increases. Ask.com seems to be crying, “Uncle.” As I said in 2007 much to the annoyance of a 20-something, “Game over in Web search.”
Next up for Microsoft and Yahoo? Real time search. Google is lagging in this sector. Maybe that’s the future for Yahoo?
Stephen Arnold, October 30, 2009
No gifts on my Halloween skeleton for this article.
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