Monday August 3, 2009 03:25

Victory of Yahoo Employees

Posted by Channy Yun

There was big news of partnership between Yahoo! and Microsoft. After the war of acquisition between Jerry Yang and Steve Ballmer, Yahoo got new woman CEO Carol Bartz and she finished remained problems that everyone minds.

Most of news media wrote Yahoo! surrendered to Microsoft and Yahoo’s stock was down. In addtion Jason Calacanis wrote Yahoo committed seppuku today.

But, I think this partnership is very positive for sustainable survival of Yahoo! in long term. Yahoo has very strong properties as like mail, news, finance, entertainment and Flickr. If Microsoft acquired Yahoo in last year, I’m not sure whether most of Yahoo! service could go on not. This partnership is good for Yahoo’s employee although there are some of redundancies in part of Yahoo’s search technology. Ballmer also said this things in conference call.

Ballmer: The deal last year was tailored more towards an investor than an operator. This deal is different, not better. Less upfront payment, and definitely a higher TAC rate.)

Microsoft has strong competency in technology and channel sales, but Yahoo does in web based service that generates good search contents. Both CEO thought Yahoo’s flexibility is very important in future.

Bartz: When we talk about internal Yahoo search that is some of the innovation we are looking at doing. Paid inclusion we will decide on later. We have full flexibility on what to do inside our site. That is the important thing, there is a lot of value there to add search to our properties.
Ballmer: It was important to us to structure the deal to give Yahoo full flexibility (to add search to its services).

BTW, In Korea, Yahoo! Korea and MSN Korea is also minor under 5% (if it’s summed) as like Google Korea. Daum(23%) and Naver(72%) dominated Korean search market. But, in case of search advertise market, Overture has almost of them except Daum’s share of Google AdWords. Now Daum and Google’s contract will be finished in this year for three years. If Daum decides to back to Overture, Korean’s search AD market is Microsoft’s.

2 Responses to Victory of Yahoo Employees


In Stroupe

June 11th, 2010 at 10:23 pm

Nice blog. Can’t wait to start my own blog.


Colin Kualii

June 14th, 2010 at 1:14 pm

Fantastic post, I will save this post in my Diigo account. Have a good day.

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