Shaky Yahoo Could Undermine Bing Search Efforts

eWeek has written an interesting article about how Microsoft is worried that an unstable Yahoo could seriously impact the efforts of Bing in the search wars with Google. Quoting Wall Street Journal's Kara Swisher and other sources, eWeek reported investors and private equity investors had shown interest in having former News Corp. President and COO Peter Chernin become part of the Yahoo leadership.

"Rumors abound that Yahoo is also in serious trouble, with anonymously sourced reports from both TechCrunch and AllThingsDigital suggesting that anywhere from 10 to 20 percent of its consumer products division could be cut. Meanwhile, the company has broadened its pipeline of crowd-sourced content, the rest of its $100 million purchase of Associated Content, in a bid to remake itself as a media portal," eWeek reported.

Yahoo has launched a number of new initiatives recently with local features and already some are coming under fire. Their Local Deals offering of aggregated discount deals has been criticized by start-up Yipit.

"I was surprised they are only working with 16 partners," Yipit co-founder Vinicius Vacanti told CNET when asked for his take on Yahoo Local Deals. "Yipit currently aggregates over 130 daily deal services creating a much more comprehensive experience. If users rely on Yahoo for their daily deals, they will be missing out on 80 percent of the deals."

Another company in the space, Groupon is in talks with Google.

Yahoo has not had a great track record when attempting to integrate programs they have bought in to their system. Overture, their original PPC advertising platform, took forever to be implemented and ultimately was scrapped for a Google version.

Yahoo has been moving to improve their popular services including redesigning their email which is the most used free email on the internet. If they can regain the popularity their portal once had in the early days of the web Yahoo should become a very stable company.


About the author

Frank Watson has been involved with the Web since it started. For the past five years, he headed SEM for FXCM -- at one time one of the top 25 spenders with AdWords. He has worked with most of the major analytics companies and pioneered the ability to tie online marketing with offline conversion.

He has now started his own marketing agency, Kangamurra Media. This new venture will keep him busy when he is not editing the Search Engine Watch forums, blogging at a number of authoritative sites, and developing some interesting online community sites.

He was one of the first 100 AdWords Professionals, a Yahoo and Overture Ambassador, and a member or mod of many of the industry forums. He is also on the Click Quality Council and has worked hard to diminish click fraud.