Yahoo – Ever Corner a Wild Animal?

by The Guy April 10th, 2008 

Jerry Yang, Yahoo! co-founder and CEO
Image Courstesy

HOLY SMOKES!  I am completely blown away by the moves of Yahoo this week, in an effort to stave off the Microsoft takeover.  As of yesterday for a two week trial, Google will handle advertising for a tiny piece of the searches carried out on Yahoo.  In fact, Google will place ads alongside 3% of the U.S. queries on Yahoo's site.  GOOGLE SEARCH RESULTS ON YAHOO!!!  It would appear that instead of being eaten by the lion, Yahoo would prefer to throw itself into the dragon's mouth!  I'd LOVE to hear what you all have to say about that, or what your thoughts on this maneuver are!  Doesn't that actually reduce Yahoo's perceived value as a search engine, having results served up by the competition?  Wouldn't that also drive down the stock price, making it even easier for Microsoft to be able to pick it up?

A combination of Operations with Time Warner's AOL.  Yep.  That's the other direction that Yahoo is going after right now along side of this new venture.  If it works out, a good chunk of AOL operations would be merged with Yahoo, along with a cash investment in exchange for about a fifth of the resulting company that would be created, according to sources close to the situation.  It would allow Yahoo to use the money to buy back it's own stock (very possibly at the same price as what Microsoft was initially offering, or perhaps a TOUCH more).  However, the combination would not be a simple one, and would tie Yahoo together with a business that Time Warner really wants to be rid of.  I'd also love to hear what you have to say about this tidbit of info!  Would that end up putting both Yahoo! and AOL in reach of Microsoft?  Certainly that would bulk up Microsoft enough to be a clear and threatening competitor to Google on the search front.

Its amazing how fast these things have come to play after Microsoft's April 5 threat of a  three week period before initiating a proxy fight, including nomination of a bunch of new directors who would probably approve the deal.  So, the clock is ticking.  The fight is on.  Now THIS is a fight worthy of being audienced from the Panathinaiko Stadium.  (Greek Reference for Tom Tsinas because he tells me that everything originated in Greece)

So, when a predator corners it's prey, the prey more often than not has a surge of strength that will either get it out of harms way, or be it's last show of power before being devoured.  I wonder which one this is, keeping in mind that no matter what happens, Yahoo! is not simply going to evaporate.  It will be sticking around in one way or another, in it's current incarnation or in another.  (and I, for one, wouldn't have it any other way!)


The Doug
aka Doug Gebhardt

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2 Responses to “Yahoo – Ever Corner a Wild Animal?”

  1. Nick James says:

    Damn. I don't think anybody saw this one coming. It's certainly a strange idea; possibly, as you say, the final act of a dying animal. But it just goes to show how deeply the anti-Microsoft sentiment appears to run within the walls of Yahoo castle.
    To climb into bed with the competition in such an unorthodox manner is surely Yahoo's way of communicating this to Microsoft. A final two fingers up at the beast that will surely consume them.
    Save me a seat at the Stadium, Doug.I'm looking forward to the final rounds of this dust-up, however they play out.

  2. The Doug says:

    Well, it certainly was a flurry of activity to happen on the heals of the microsoft letter on the 5th. The Google pairing just puts them both in a sticky situation of monopolizing (that which Goog doesn't want to happen with Yahoo and Microsoft, no less). OH the drama and excitement! It's like a well played out movie…speaking of which, you GOTTA read "Fiddle Dee Dee – Is Yahoo Gone With The Wind?" for even more amusement on this!

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