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April 15, 2008

Is Yahoo that Desperate?

Are they kidding?

Yahoo is reportedly going to try running Google AdSense ads alongside their own natural search results. Let me say that again - Yahoo is going to use Google to try to better monetize their own search engine.

Unless an innovation emerges that changes the nature of Internet Search, Google has won the Search Engine battle. Yahoo owned it, and for various reasons, Google owns it now.

So, is Yahoo throwing in the towel? Are they so desperate to avoid being acquired by Microsoft that they'll partner with their primary competitor? Is Pepsi going to start selling Coke next?

The real question is will Yahoo's partnering with Google somehow stop the Microsoft acquisition? Yahoo seems to think that showing they can better monetize their traffic, they can then convince shareholders that the Microsoft offer is too low. However, Microsoft is on record saying that the real anti-trust issue comes to play if Google and Yahoo combine, and end up with roughly 90% of the search market share. This appears to be a legitimate complaint. And, if Microsoft follows through with a hostile take-over, shareholders will be left with a decision between a guaranteed offer for their shares, and the hope that Yahoo can raise shareholder value by partnering with Google.

Microsoft has given Yahoo a deadline to accept their offer before they take it directly to the shareholders, so this shouldn't take too long to play out.

For these and other Global Market Share Statistics, go to 


- Vincent Vizzaccaro