Well, today is a sad day in the land of zeroes and ones. The very first super-successful search engine will cease to exist as we know it, and the beginning of that end is today.
Reported earlier this evening, and let go by me as I didn’t want to believe it, was a story concerning the deal that has been struck between Microsoft and Yahoo. It spoke in tones that were not quite as sure as I like to be before I write, so I continued watching the site, and after a few hours, more came in the form of a notice delineating the terms of a deal.
turn into this…
over the next four years…will the world survive?
According to several sources close to the situation, under the terms of the large-scale deal–in which Yahoo would sell search advertising for its sites and some of Microsoft’s, while Microsoft search technology would power it–Yahoo would get to keep pretty much all the revenue and more for the next three years. Sources said that in the first two years of the partnership, which is expected to be announced tomorrow, Yahoo would keep 110 percent of all revenue. And, in the third, Yahoo would get 90 percent. That could represent many billions of dollars, since Yahoo will be selling for both companies. For Microsoft, the payment will–within four years–allow the company to become the de facto No. 2 search technology player after Google.
So, Microsoft gets what it wants, ad share, and a larger built-in market, while Yahoo gets what is needed badly, money. It all boils down to money; Microsoft has plenty to throw around, even if it means putting loyal employees out of work to do it. (I know that Microsoft is no different than many others, but since Microsoft always portrays itself as a ‘great company’ you are left with higher expectations. I assume that those expectations only come true if you are a large stockholder.)
As we await the announcement later today, the only thing that remains to be seen is whether or not there will be a Yahoo, if in name only, after that fourth year. Could Bartz be throwing the dream that was Yahoo away for the benefit of the stockholders?
Curious times with grimy decisions and gritty results. As they say. life is real.
|Be nice to people on your way up because you’ll meet ’em on your way down.Wilson Mizner|
hopefully, the Yahoo people responsible for this did act nice.