Jul 29

Yahoo’s Losing? Well then, So Are You

The Yahoo stock price hit $20.50 a share today. Last week, Microsoft CFO Christopher Liddell said Thursday that Yahoo is a “declining asset” and that the chances of a full-on acquisition are now “negligible.”

This sucks.

It doesn’t suck that Microsoft is choosing not to acquire Yahoo. It sucks because Yahoo has an open source initiative that no one in the press seems to be paying attention to. A good example is Search Monkey. If you can’t compete with Google, just open it up and let others improve the search engine.

Who ultimately is the loser in all of this? We are. People are afraid of Google for a reason. They have their hands on a lot of different industries and have the power to shut a lot of people down. When Yahoo struggles with a good idea, Google gains strength in market share. Google can therefore charge more money to us as advertisers so it can further improve its reaches in other arenas. It’s a slippery slope.

I was with a lawyer who is a client of mine and showed a simple demonstration. I Googled “criminal lawyer Houston” and clicked the first ad. I said, “That just cost that guy $20″. With Yahoo struggling, that same ClickAd will go to $30 before you know it. Perhaps the biggest spenders on AdWords should get a clue and throw some developers Search Monkey’s way.

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  • http://nicefishfilms.com/blog nicefishfilms

    Michelle, Great post! Yahoo is struggling with themselves first and foremost. They have failed to tell their story effectively and highlight their many strengths. They are one of the most visited sites in the world, they have strong patents- http://www.techuser.net/microsoft-yahoo.html and own some best real estate on the net. It amazes me that they weren’t aggressive in getting ahead of the Ichan story, a corporate raider comes banging on your door and you fight to keep him out but the press, for the most part, only covered one side of the story. Wake up Yahoo- you are a success, millions of people around the globe know and like your brand!

    Here’s more proof that you are correct Michelle- http://www.dvorak.org/blog/?p=19141

    I truly hope that they remain independent- competition is the best breeding ground for innovation.

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