‘Micro-Hoo’ the Local Angle

Let’s assume the deal gets done; what’s the local angle?

Microsoft has a very impressive platform in Virtual Earth and all its related assets so you can assume that Yahoo!’s mapping platform goes away or largely so. Maybe one or two things get integrated into Virtual Earth. One can also imagine that Virtual Earth will quickly try to become more “social” as Google has with My Maps and collaboration on My Maps.

Other than the mapping platform, Yahoo! Local is the superior product and we might see an integration of most of Yahoo! Local with Virtual Earth maps and 3-D. How that might look is unclear to me beyond the conceptual combination.

Yahoo! has stronger verticals — jobs, cars and real estate — generally than MSN/Microsoft. So I would imagine that while listings and advertisers would be combined, Yahoo!’s assets would probably dominate.

In mobile, Yahoo! is farther along in many respects (esp. with carriers and biz dev), but it’s probably a toss up regarding Live Search (the application) and Go. Both could be preserved potentially. Yahoo! doesn’t have any “voice search” assets (e.g., 800-Call-411) and that would be a nice addition to Yahoo!’s otherwise fairly strong mobile platform.

Other thoughts?


11 Responses to “‘Micro-Hoo’ the Local Angle”

  1. Local SEO Guide Says:

    Is AT&T a potential interloper on this deal? Maybe I’ve got too much local on the brain but if I were a big YP player I’d want access to those users and those advertisers. I don’t know if I could execute but I’d be freaking out at the consolidation and doing the math on how much I am going to have to pay these guys over the next decade to service my advertisers. It might not add up to $31 billion but it’s still going to be a big check.

  2. Greg Sterling Says:

    I think AT&T is potentially and there are probably meetings and number crunching and telephone calls going on at the moment. There’s going to be some sort of deal. The only question is who/whom?

  3. Microhoo & Local Search Says:

    […] on YSoft local from Greg Sterling and a great MSN/Yahoo SEO analysis of the deal from Aaron […]

  4. cohn Says:

    Great question Local SEO Guide!

    Size is the enemy of speed.

    We will soon see if AT&T / partners? can make
    their way to the table.

    Wouldn’t the deal be a little rich for AT&T’s blood?

  5. HedgeFundBoy Says:

    MSFT Virtual Earth is def better then Yahoo Maps. Love the Birds Eye View stuff which Yahoo doesn’t have. Yahoo Local is better local search. HotJobs, Yahoo Autos and Yahoo Real Estate are all def better then what MSN has. Most of the time, MSN has just partnered with aggregators.

  6. Microsoft eyes Yahoo to topple Google | Local Search Solutions Blog Says:

    […] The local angle, on Screenwerk […]

  7. Kevin Heisler Says:

    Excellent point by Cohn: AT&T would have a tough time justifying the deal in the short run. Even if they could afford the deal, their stock would likely suffer in the near term. Even MSFT took a hit — and was roundly criticized for being a “dinosaur” due to their inability to succeed online.

    Andrew – I love the concept, though. No question the long-term consequences of not doing the deal will cost the telcos and IYPs dearly. Unfortunately, the Street judges CEOs on a quarterly basis.

    A visionary leader could sell the deal to his board – but he better have a golden parachute if the integration plan doesn’t fly. He’d either go down as the greatest leader in telco history — or just go down.

    Hard to imagine a CEO who’d be willing to risk a kamikaze strategy.

  8. Greg Sterling Says:

    I had always thought, because of the relationship and their largely complementary assets, that AT&T was the logical strategic investor or buyer. However, the amount and timing of the MSFT bid and the fact that it would represent about 20% of AT&T’s overall value makes it hard for AT&T to now respond (very quickly) with a competitive offer.

    But you can bet that Yang & Co. are scrambling for strategic alternatives for many reasons — including because they have an obligation to do so for the board, as much as they have an obligation to consider this offer very seriously.

    Silicon Alley Insider discusses would-be private equity “white knights” that may be in the picture: http://www.alleyinsider.com/2008/02/hold-everything-we-may-get-another-yhoo-bidder.html

  9. Local Angle on Microsoft-Yahoo! « Screenwerk Says:

    […] Angle on Microsoft-Yahoo! My “Locals Only” column today elaborates on my preliminary thinking about the local aspects of the Microsoft bid and the challenges […]

  10. G.Simon Says:

    Yahoo by Microsoft. YahMic! YahMic! YahMic!

  11. Michael Sanders Says:

    This is classical in terms of seo. Nothing appears to rag against it compared to that.Ironically, this is exactly what was forewarned about some years prior at the big blackhat about google some number of years ago in ’93.

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