No Microhoo. Google saves Yahoo.

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No Microhoo. Google saves Yahoo.

Posted on 07 May 2008 Tags: google

Last Saturday, Microsoft withdrew a $47.5 billion offer to buy Yahoo after Yahoo dug in for a higher price. So… no Microhoo.

Turns out the deal killer was Google. The search giant offered to sell ads for Yahoo, giving them the bulk of the revenues - and Yahoo plans to use the money to develop their own search - to rival Google.

Does that even make any sense? Sure it does.

Google’s founders (Larry Page and Sergey Brin) and Yahoo’s founders (Jerry Yang and David Filo) all hail from Stanford. Yahoo gave Google its first break, hiring Google to power Yahoo search back when Google was the new kid on the block. It appears Google is returning the favor. (more on this at the NYT blog)

So, Google preserves their number one spot (meep, meep!), Yahoo remains free to order up the next search anvil from Acme Corporation, and Ballmer Fudd is left scratching his head and muttering about “those cwazy wobots!”

What’s the takeaway lesson here? Google is still the place to rank. And if you play your cards right, your closest competition could be your saving grace when you need it most. After all, if you don’t have the customer, odds are - they do.

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