A lot of negative press has surfaced pertaining to Yahoo!’s failing revenue performance in 2007, but what must be said about what they are now doing well, is their gaining mind share through all of their recent press activity.
The most recent update from Yahoo is that they now are testing an ad program that will temporarily carry Web search advertising from Google. Although Yahoo swears up and down that this by no means is a hint to a longer lasting deep relationship with Google, you can’t help but wonder what this will do the current Microsoft – Yahoo negotiations. Is this a play by Yahoo to show Microsoft that they are a valued partner to other search heavy weights in the market place? Will this prompt Microsoft to up its bid?
The Web search-advertising test will be limited to no more than 3% of Yahoo’s search queries and the test is scheduled for an ‘undetermined’ temporary time frame. During the test period, you will be able to see Google ads displayed alongside Yahoo search results performed in the US only.
In a related statement, the Yahoo board said it “is exploring strategic alternatives to maximize stockholder value, including exploration of potential commercial business arrangements.” What I think they were really trying to say is, this move should make Microsoft wake up and see that their proposed $31 per share is, as they have been saying all along, way too low.
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