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Advertiser will no doubt be asked to stump up more for the increased audience numbers and guess who will end up paying those increased costs?
If you can't compete with 'em (let alone "beat 'em"), buy 'em.
Both of these companies seem to me to have brand issues more than anything else. They need to resolve those more than they need a merger, imho.
And search? That's now a branding issue more than a technological issue afaic. I doubt most people would understand the differences in the kinds of search that are available; the different algorithms/techniques. They just use what they believe works best... and Google has word-of-mouth on that front.
Right now, this is a marketing issue. And Google is kicking both of their asses. A merger isn't going to fix that afaic.
goodbye yahoo, hello gworld. somehow i feel better knowing fate has intervened to make this choice clear.
now i have to deal with my flickr obsession (not to mention upcoming.org...)
Umair Haque at Bubblegeneration is the one who really hits on this.
Google has pioneered the real management innovations that work for a radically decentralized, quasi-anarchic landscape like the net.
Yahoo and Microsoft don't get it. They are too 21st century: giant firms built to organize scarce production resources.
You know the deal:
Wikipedia v. Britannica
Apache v. Microsoft
SETI@home v. IBM
Yadda yadda. Google *as a firm* is built to leverage openness as much as possible.
Yahoo and MSFT can't win by becoming more bloated. They're both effed.
Umair Haque:
"Let me put that another way: Yahoo thinks the post-network economy demands a typical corporation, with nicer marketing. Google knows the post-network demands a new kind of firm - one which is different in it's very DNA.
"That's the real source of Google's advantage."
It's right on the front page of Bubblegeneration, on 3/15/07
If this were to work, I would acquire Yahoo! but just give them more funding for acquisition of startups in good places. An excellent acquisition by Yahoo! was Flickr. Now, Y! should step up to the plate and build onto Flickr a whole media solution, adding the all important video component. These developments should be supported by MS.