I have been thinking about writing this post quite a long time. Why Yahooo keeps evading the Microsoft proposal is something of intrigue for a large number people out there.
If you look at the excellent trio you will realize,
Microsoft wants Yahoo to compete with Google in the web Sphere, With MSN doing nothing even in close to Google in terms of world wide web which is a more popular platform than an OS. Being online will be living in a few years , you will be doing virtually everything from booking a ticket to the cinema to your travel and the cab that gets you to the airport will be done online. You will be carrying a bunch of online tickets and given that kind of market and possibility and Google going China, we are heading towards a world that will be completely Googled.
Now, Yahoo , wants to get a hit with advertising as much as Google does, It is mostly the will to become big and really compete against the Google search, They don’t want the leadership , they want the money that google generates. They are currently making much less profit on their ads than Google does. With 11 % market cap in the search sphere it is now dreaming about making as big as Google.
Well, Google does not want to fight Yahoo and Microsoft alone. It wants to anything that will keep the two separate. They are currently allowing Yahoo to sell ads in their own search space to see Yahoo through this deal. Since they have gone ahead with the model I guess there is serious discussions about Yahoo and Google thinking about a long term merger in future, Google will do it for the Yahoo talent and the existing customer base and Yahoo will do it for the bigger backing of Google. Kind of elder brother treatment. Overtures and the Panama advertising model that Yahoo uses is not a big hit as of now but the model is much different for the Google model.
They are deploying it but the management wants quick results and they aggressively pursuing it, It is up to time to reveal the secrets.
AOL and Yahoo know it for sure that for page advertisements the publishers take away 80% of the search revenues leaving a small amount to the search engine but the pages and content owners make more money , with this aim they are planning to make more number of pages online. They are planning to expand and enhance the website ideas as a major source of revenue,
I believe that will be a good idea