Thursday, August 25, 2005

Yahoo! v. Google

Yahoo! reported a good many deals recently.

What does it mean, when we compare Yahoo! to Google?

Three things:
1. Yahoo! diversifies more. Sponsored search is almost 100% of Google's revenues, but probably around 50% of Yahoo!'s.
2. Yahoo! managers are true deal makers. This is very relevant, because Yahoo! need to entertain visitors for as long as it can in order to maximize not only advertising but fees as well. (Visitors spend little time on Google property - another distinction.) Besides, Yahoo! still needs many deals to beef up its content offering.
3. No VoIP yet (apart from voice-over-IM, VoIPoIM), but it will come, if it was only for the Dialpad acquisition. Google Talk was launched yesterday.

Yahoo!'s August deals:
1. Extension of the existing alliances with Verizon (low-end DSL) and SBC (music downloads).
2. Alliance with Viacom, that will be a distributor of Yahoo! Search.
3. Content deals with CNN and ABC News. News clips will be accessible for free on Yahoo!.
4. Entrance of the Chinese auctions market by acquiring a 40% stake in Alibaba.
5. And then I'n not even looking at the unstoppable stream of new and enhanced products and services.

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