The reported replacement for Yahoo CEO Jerry Yang is Carol Bartz. She is no stranger to the technology sector, as she guided the growth of Autodesk:
It may reflect the unique interests on the internet. In the world of internet search, Britney Spears has not slipped in her ability to generate interest:
Microsoft has stated repeatedly that it is no longer interested in Yahoo. However, there have been changes at Yahoo. Jerry Yang has stepped down as the Chief Executive Officer. The stock market has reduced the value of the Yahoo stock significantly. It is not a surprise, then, that there is a report that Microsoft has a renewed interest in Yahoo. The Timesonline is reporting that Microsoft is offering $20 billion for Yahoo search:
Carl Icahn must think that Yahoo will make money. Even for a wealthy billionaire, spending approximately sixty seven million dollars is significant:
If you wanted a piece of hardware in January and thought it was necessary, would you be thrilled that it now costs only one third of the price at the beginning of the year? Of course, you would be. And perhaps, if the ‘Geek Force’ is strong, you might buy two of whatever it is.
It is a significant shift for Yahoo. The CEO of Yahoo, Jerry Yang, is stepping down:
“…Yang, 40, will step down as CEO and return to his former role as “Chief Yahoo.” The company’s board said it has hired headhunter Heidrick & Struggles to find a replacement.”
The partnership with Google was a means of generating much needed revenue for Yahoo and buffering any further acquisition attempts by Microsoft. The project seems to have been ended prematurely with Google removing itself:
“Google has decided to abandon its advertising partnership with Yahoo to avoid having a “protracted legal battle” with regulators.
The deal involved Google providing some of the advertising around Yahoo’s search results and would have been worth $800m (£494m) a year to Yahoo.”
link: Google abandons deal with Yahoo
This makes Yahoo vulnerable. It would not be surprising to see Microsoft make another offer to Yahoo. If Microsoft holds to form, the offer will be made on a late Friday - just to add pressure to the situation.
Catherine Forsythe
There is support for the Google / Yahoo Advertising plan in the House of Representatives:
“…The lawmakers, all Democrats from California, urged the DOJ not to block the ad deal, in which Yahoo would run some Google search ads on its Web pages. The group sent a letter to the DOJ Friday.”
link: Lawmakers call on DOJ to approve Google-Yahoo deal
For Yahoo, this advertising arrangement is imperative. It allows Yahoo to generate income along with Google and it gives Yahoo a financial buffer. The possibility of a Microsoft acquisition of Yahoo still lingers; and Yahoo knows that Microsoft is waiting for an opportunity to revisit the possibility of a Yahoo merger.
Catherine Forsythe
Governor Palin’s use of Yahoo email has been discussed in the press. It seems that hackers may have compromised the security of the Governor Palin’s Yahoo account:
“WASHINGTON — Hackers broke into the Yahoo! e-mail account that Republican vice presidential candidate Sarah Palin used for official business as Alaska’s governor, revealing as evidence a few inconsequential personal messages she has received since John McCain selected her as his running mate.”
link: Hackers target Palin’s e-mail account, post screenshots
The details of how Governor Palin’s account may have been compromised were not revealed. However, Yahoo now has the attention of the Secret Service.
Catherine Forsythe
The joint advertising venture between Yahoo and Google has run into some major opposition:
“The Association of National Advertisers sent a letter objecting to the proposed Internet search advertising partnership between Yahoo Inc and Google Inc to government regulators reviewing the deal, the group said on Sunday.
The letter to Assistant Attorney General Thomas Barnett, noted that “a Google-Yahoo partnership will control 90 percent of search advertising inventory,” the ANA said in a statement.”
link: Advertiser group objects to Google-Yahoo tie up
The concern is the near monopoly that this partnership will create. That domination may be able to dictate advertising costs in an unprecedented manner. The irony is that this Yahoo / Google collaboration is defensive manoeuvre to prevent a buy-out from Microsoft. There are concerns that a Microsoft / Yahoo merger would be in itself a monopolistic concern.
Catherine Forsythe
