Yahoo Outsource Search to Google! Today WSJ


Pressure on Yahoo to outsource search to Google or MSN continues to mount. Breaking Views in today’s WSJ slams Jerry Yang’s strategy to remake Yahoo into the front page of the Internet. The column calls for activist investors to shake up “discredited management,” outsource search, and spin off Asian investments in Alibaba and Yahoo Japan.

The BreakingViews guys can’t decide whether they think Yahoo is “the Hamlet of the Web” in existential crisis or “navigating the waters of Internet advertising like a goldfish evading a shark.”

Google as Jaws. Now we know who really ate the goldfish in Steven Spielberg’s pond.

Yahoo has heard the criticism before. It echoes advice from Sanford C. Bernstein research analyst Jeffrey Lindsay back in September, 2007: outsource search to Google and cut staff by 25 percent, as reported by Barron’s Tech Trader Daily columnist, Eric Savitz.

(full disclosure: my brother, Jon Heisler, is a vice-president with Sanford C. Bernstein in private wealth management.)

Only last week, The Motley Fool picked Yahoo as the worst stock for 2008.

How’s your weekend going?

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