Microsoft/Yahoo Deal – Time To Cash In
TechCrunch.com has a great article about the details of the new Microsoft bid for Yahoo. I’m not going to repeat the whole article but, essentially, i) MSN’s search technology will power Yahoo; ii) MSN will pay Yahoo a premium for their CPC space; iii) MSN only buys 16% of Yahoo’s stock. Seems like Yahoo has seen that it’s time to cash in on their online real estate. They’ll give up the technology/staffing needed to support their search algo and concentrate on content development(?) Isn’t that most of About.com’s model? Except someone owns them…
Most people’s focus in this new Microsoft/Yahoo deal is that Google is implicated as a possible co-advertiser, perhaps with ads appearing alongside Yahoo’s own ads. The terms of this aspect of the deal contain so many conditionals, it’s destined for failure. Give it 3 months online before it fails to meet one of the terms… if the government doesn’t stop the effort for some other reason before it even gets off the ground. It will be interesting to see where this goes in the coming business week.
Written by jclayc on June 15th, 2008 with
1 comment.
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#1. June 16th, 2008, at 1:07 PM.
This deal should have happened years ago. Google is soo far ahead at this point that MicroHoo will need to complete a massive hail Mary pass to even be competitive.