Yahoo and real estate search site are both planning to cut jobs. While Yahoo has been said to have a bloated work force, Zillow's problems are due to the mortgage crisis and a decreased need for home valuations.
A Microsoft acquisition might not have saved these Yahoo jobs. Mergers are notorious for job cuts and many would have walked away. Much was said about the differences in the cultures of the two companies as being a reason against the merger. Of course, fewer people care about corporate culture when the economy is horrible and your company's stock has plunged. Still, hindsight is 20/20.
Meanwhile, there's just no way around the matter for Zillow. No one's talking about bailing out real estate search and home valuations sites. It's clear that the housing market was a giant bubble and that businesses built around it are going to suffer or need a new business model.
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