Yahoo!’s Search Deal with Google

I did a factual write up of the deal and the conference call yesterday over at Search Engine Land. Yahoo! is losing its Microsoft bid stock bump, after announcing that those talks were over.

Yahoo stock drop

While some hate this deal, I’m ambivalent and think we’ll have to wait and see whether it only benefits Google or helps both companies. For better or for worse Yahoo! is positioning itself as an ad exchange, including search.

It’s Yahoo! that really put Google in the position it’s in today by adopting Google at the expense of inktomi in 2000. Back then Google was a fast growing but still fledgling engine, not the most powerful brand in the world. Yahoo! played “kingmaker” for Google. Now Google is clearly in control.

Once again I’m reminded of Star Wars (Darth Vader to Obi Wan): “When I last saw you, I was but the learner. Now I am the master.”

star wars


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