Internal Yahoo Docs Show Google Partnership is an Act of Desperation
Do desperate times really call for desperate measures?
It does, if you’re a company facing a hostile acquisition by Microsoft!
Just one day before Microsoft made its bid for Yahoo, executives dismissed any notion of partnering with Google on search ads. According to Reuters:
Bracing for employee questions over whether Yahoo should outsource its search-ad sales to Google, executives were prepared to argue that any short-term gains would derail Yahoo’s long-term push to become a "must buy" for advertisers.
"Short-term analysis of the revenue potential of outsourcing monetization may not take into account the longer term impact on the competitive market if search becomes an effective monopoly," an excerpt from the company document said.
Just a week or two later, Yahoo had reversed course and announced it would seek a partnership with Google.
The internal Yahoo documents were unsealed by a judge now the whole world knows that Yahoo’s talks with Google are nothing more than an attempt to keep Microsoft at bay.
Now that investors know Yahoo executives saw only short-term benefits–and long-term negatives–from a Google deal, will they once again push for Yahoo to go back to the negotiation table with Microsoft?