Something about the test to run Google ads on Yahoo search result pages reminds me of the last North Korean election. You know, the one where Kim Jong Il won with 100 percent of the vote. Did anyone really need to sit through the charade to know the outcome?
Yahoo and Google are already talking about expanding the program after “positive results,” according to The Wall Street Journal. The test was supposed to last up to two weeks, it didn’t even make it to one.
The real question is, what game is Yahoo playing? Is it really going to mortgage the future by giving away one of its most valuable properties (ads on the search pages) to a competitor? Or is this simply a ploy to force more money out of Microsoft’s pocket?
It might be unlikely that Google would partake in the latter. Google doesn’t seem like the decoy type, but if forced to pick between Microsoft buying Yahoo for $44.6 billion or having its rival spend closer to $50 billion, I think we all know the choice. Still, this would be a pretty elaborate setup for that to be the outcome.
More likely is that Yahoo is drowning in the rising ocean that is Microsoft’s three-week ultimatum to sell or be taken over (our coverage). Google is the lifeguard that has briefly pulled Yahoo out of the water and started applying CPR (and CPMs) — unfortunately, the tide is likely still rising and Yahoo, on its back, may soon find itself right back in the water.
It’s a nice thought that Yahoo and Google could somehow strike an accord to partner up without actually partnering up (lest they face antitrust violations), but such a scheme would likely have to be very elaborate while still generating enough revenue to make it worth both side’s while.
Google announces its first quarter earnings tomorrow. Yahoo does the same on April 22. Microsoft’s three-week deadline is up on April 26. Things are going to get even more interesting over the next couple of weeks.
[photo: Universal Pictures' Charade]
2:56 pm
VentureBeat said:
[...] Yahoo and Google discuss extending charade MG Siegler | April 17th, 2008 | Add Comment » [...]
2:56 pm
Compared to Google’s earnings homerun, Yahoo gets a single — but a hit is a hit » VentureBeat said:
[...] Just as Google did last week, Yahoo declined to elaborate on the two sides’ recent search advertising deal. Yahoo president Sue Decker said that it was premature to speculate on whether some sort of permanent arrangement with Google may come of this, as has been widely reported. [...]
5:54 pm
For a few dollars more…Microsoft will get Yahoo » VentureBeat said:
[...] yeah, and don’t forget about the whole Google/Yahoo search advertising charade, which is still going on. The Wall Street Journal says that is still playing a role in all of this [...]
5:04 pm
Yahoo breaks the wrist, Microsoft walks away » VentureBeat said:
[...] So there you have it, if CNET’s source is correct, it’s over — at least for now. Nothing would stop Microsoft from another attempt a few months from now if certain circumstances present themselves, such as Yahoo not being able to hit the numbers its projecting for the future. Still, one would have to assume that even with Microsoft out of the picture for now, Yahoo and Google will forge ahead with their search advertising deal. [...]
11:07 am
For whom the opening bell tolls: Yahoo stock plunges, rallies » VentureBeat said:
[...] Since opening the trading session around $23-a-share, the stock has steadily climbed back up and now finds itself in the upper $24-a-share range. Why? Well, the initial sell-off was no doubt thanks to many who assumed a Microsoft takeover would help the company and bought the stock for short-term gain, Now a new group of investors may be buying up the stock assuming the companies will go back to the table at some point. Some may also like the prospects of Yahoo continuing its search advertising deal with Google. [...]
5:49 am
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9:25 pm
Knife approaches back: Google considers walking away from Yahoo search ad deal » VentureBeat said:
[...] were previously discussing extending the trial while Microsoft was still in hot pursuit of Yahoo. We called it a “charade” at the time, as it seemed clear what Google was doing: doing anything it could to stop Microsoft from acquiring [...]
6:29 pm
Yahoo responds to Icahn’s short story with the Warren Commission report » VentureBeat said:
[...] interesting again if Google re-enters this picture — perhaps this will push them back into a full pursuit of the search advertising deal with Yahoo that it may have been cooling [...]
9:13 pm
Microsoft to Yahoo: We’ll take what we can get — or we’ll back Icahn » VentureBeat said:
[...] Well that didn’t take long. Barely two weeks after walking away from its proposed deal to buy Yahoo, Microsoft released a statement today that the two sides were back at the negotiating table “in light of developments.” Those developments are billionaire financier Carl Icahn’s hostile actions to replace Yahoo’s board and word that Google and Yahoo are once again talking about extending their search advertising partnership. [...]
2:08 pm
Microsoft / Yahoo dealings go from mostly dead to all dead » VentureBeat said:
[...] in which Google ran advertisements on Yahoo’s search results, today that trial may be extended or even made permanent. An announcement could be made this [...]
4:30 pm
Yahoo’s fling with Google turns into a long-term deal » VentureBeat said:
[...] worth noting that fellow VentureBeat writer MG Siegler previously called the Google-Yahoo partnership a “charade” on Google’s end to prevent the Microsoft-Yahoo acquisition. I’m surprised that a movie [...]