Forum Moderators: goodroi
A partnership could give Yahoo some needed leverage as it tries to ward off an unwelcome $42 billion bid from Microsoft Corp. Some view the potential pact as mere gamesmanship, particularly in light of antitrust concerns that a Google-Yahoo linkup would likely raise.
A search-ad deal could complicate Microsoft's efforts but is unlikely to derail its plan. Yahoo could simply pull out of the partnership should it agree to be taken over by Microsoft, people familiar with the matter say.
Still, a Yahoo partnership with Google is now increasingly likely, the people said. Yahoo and Google said last week they would undertake the preliminary test in order to evaluate the potential of a broader search-ad outsourcing arrangement.
Such a deal could increase Yahoo's cash flow by more than $1 billion a year, according to Citigroup Global Markets analyst Mark Mahaney. The reason is that Google's system generates significantly more revenue for each search query than Yahoo's does.
Wall Street Journal [online.wsj.com]
I feel for Y, but the truth is I have friends who, for reasons that go back into a long distrust of G, insist on using Y ads instead of G ads on their web sites. The Y ads are terrible.
A billion dollars is a lot of money, in my opinion.
And the most important question, will they have an option to opt out of either search engine?
If it is Google ads going on Yahoo, you can bet that many advertisers will drop out seeing as how the minimum adwords CPC is typically much higher.
Oh well. At this point I'm actually hoping for the M$ takeover.
I will find it really hard to believe they will be able to mesh the two together to keep this from happening.
Since I use Google and Yahoo for the same keywords for the same sites at the same time how will I keep from paying twice if my ad shows twice on Goggle due to this partnership.
From the article:
"The overlap between Google and Yahoo could make it hard to get a deal past regulators, analysts say. But the two are exploring ways to address potential regulatory problems, people familiar with their discussions say. Possibilities include limiting the partnership to specific groups of search queries or regions, for example."
Based on this, my unvalidated assumption was that there would be no overlap - as lines would be drawn (somehow).
And, being that I believe this to be true...
"Such a deal could increase Yahoo's cash flow by more than $1 billion a year, according to Citigroup Global Markets analyst Mark Mahaney. The reason is that Google's system generates significantly more revenue for each search query than Yahoo's does."
...my guess would be that Google takes the majority of the split.
...my guess would be that Google takes the majority of the split.
Doubtful. That would not help thwart the MS takeover. They will be generous. It is money in their pocket they did not have before no matter how small the take. Plus they will get some search query data from their top rival to analyze... priceless.
So wait. Will it be Yahoo ads on Google or Google ads on Yahoo?
Since I use Google and Yahoo for the same keywords for the same sites at the same time how will I keep from paying twice if my ad shows twice on Goggle due to this partnership.
a - it thwarts MSFT, which is critical.
b - the more clicks / impressions, the more consolidation / higher the bids on Google.
c - they get a lot of critical data out of Yahoo (basically, a list of IP addresses that use Yahoo but don't use Google), before they get taken over by MSFT, which could be hyper critical when they decide to compete with Microsoft directly if they take over Yahoo.
It's a huge win for Google. The money is mere icing.
Basically, Y + friends have spent billions build quality web publications, and now G is going to monetize it and make a large chunk of cash on their backs.
I wish I had come up with G's business model 10 years ago, simply brilliant.
