This week the WSJ carried a story that Yahoo is struggling to find a way out of the search deal it struck with Microsoft.
Call me old fashioned, but, surely, when you strike a deal, and itís agreed, shouldnít it be honoured. Clearly, the way the article is written indicates a shift since the agreement was made. Obviously, the agreement was signed under the previous management. The alternative to the deal is a get-out clause, related to performance. The only other option is if both parties are prepared to negotiate an early termination to their mutual satisfaction.
One big question is, surely, what would Yahoo do if it hadnít got a search deal with Microsoft?
One possibility is, of course, Yahooís CEO, Marissa Mayer, striking a deal with Google. That, of course, is fraught with problems, not least the U.S. authorities which may see this as anti-competitive. Alternatively, there are other search services out there that may want to provide a search capability, such as Baidu, Yandex, etc.
The more interesting alternative is to reinvest in its own search capability. It could, of course, come from the algorithms I assume it probably retained, within its treasure chest of businesses absorbed over the years. Alternatively, what about acquiring another, smaller search engine it doesnít own? There are a few out there, but perhaps, with lack of scalability.
It no longer has the resources in hardware and engineering, so there would be a significant financial investment to restart from scratch.
Recruiting engineers, honing the algorithm, building the infrastructure, and getting everything ready going to take a great deal of time.
One other major problem for Yahoo is the lack of advertising system, which Microsoft secured in the original search partnership. There are few with the resources to support that, and it is a significant challenge for Yahoo to switch, or to rebuild a system.
This is all speculation, and will depend upon so many factors: Itís not just technical, or contractual. Either way, itís not going to be easy to change the status of the search partnership, and switch on an alternative.
The previous WebmasterWorld Weekly is here.
Welcome to this week's WebmasterWorld Weekly Roundup.
WebmasterWorld Members discuss Penguin recovery, or not. Some are waiting over a year, despite making changes to their sites. Tell us about your Penguin recovery tips.
This week, WebmasterWorld Members were debating whether SEO is a viabile way of making money with Google AdSense. Join in the discussion.
The US Senate sided with financially strapped state and local governments Monday by passing an Internet sales tax Bill. It is indicated that some smaller online retailers may be exempt. Until it's finally passed and signed by the President, it's not law. However, it has generated a good deal of discussion. Join in our thread on the topic.
There was further discussion on this topic as WebmasterWorld Members looked at aspects of preparing Ecommerce sites for potential Sales Tax Collection requirements.
News from Adobe shook a few people up as it announced a subscription model for Dreamweaver, Photoshop, Fireworks, etc. It seems that its software will be moving to subscription only versions, which doesn't seem quite right to most of Adobe's users. Join in our thread on the topic.
WebmasterWorld's monthly look at Google's SERP changes indicates some flux as webmasters discuss the latest movement. Help keep the thread as comprehensive as possible by joining in.
As discussed, the Wall Street Journal reported that Yahoo was struggling to escape the search partnership with Microsoft.
It was also confirmed in an SEC Filing that Yahoo has extended its search deal with Microsoft.
I read that W3C will go ahead with the controversial Encrypted Media Extensions Web video technology. What do you think about the move? Will it improve the openess envisioned?
Here's a quick catch up with some other news snippets.
U.S. Lawmaker's Proposal To Combat Online Espionage
Alibaba's 4Q Profit Up 171 pct
France and Germany to Consider Questioning Google Over Tax
Microsoft To Continue With Shrink-Wrapped Office Software, and Subscription Software
AOL Posts Q1 Revenue Increases
Report: Facebook Buying Social Mapping/Traffic App Waze For Up To $1 billion
Report: Microsoft Interested in Nook Media
Software In New Zealand is No Longer Patentable
There will be a short break next week, and we'll be back on May 23. In the meantime, if you've found some news that we haven't covered or discussed, drop me a message, or post it yourself and let me have the link.
Have a great week!
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