Yahoo Receives Another Nail in the Coffin
Breaking away from elections and politics for a bit and moving to the more mainstream, Google has announced today that it is ending it’s advertising partnership with Yahoo to avoid a legal battle with federal antitrust regulators. From the outside this sounds like a great thing for Google and another nail in the coffin for Yahoo’s long term prospects.
Yahoo stock was up considerably today as investors considered whether or not this would reopen discussions with Microsoft, which frankly seems like amuch better fit, although I truly believe that even the merged companies would soon become a rounding error in Google’s advertising success. As an advertiser, there are a lot of options out there, but very few offering the same CPC value as Google. At this point Microsoft has declined to comment, although I suspect that their consideration for this deal is soured and any offer Yahoo receives from Microsoft will reflect a significantly reduced market value.
Yahoo has expressed frequently that they would prefer to remain independent, but few financial analysts believe it can and few on the Internet seem to feel that Yahoo offers a compelling value for the average consumer, and without marrying a product oriented company their audience will soon erode to companies that are able to offer better, more compelling product lines. At the same time, with the changing economy, Yahoo has gotten very cheap, and while few other companies could match Microsoft’s buying power, it is possile that companies like Time Warner could try and fold the brand into their marketing units.
Only time will tell, but it’s not looking good for Yahoo right now.
Ranter
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