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May 15, 2008

Yahoo! No Longer Top Web Destination

Yahoo! certainly has its work cut out for it.  Having dodged the Microsoft bullet it now finds itself on the other end of a proxy fight brought on by Carl Icahn to oust the current Yahoo! board and work a deal with Microsoft.  That, of course, assumes that Microsoft is still interested.  They probably are in spite of what Gates, Ballmer, et al. said since the buy offer collapsed, but at the right price.  It might be less than the reported $33 per share that Microsoft put on the table before walking away.  That may not matter to Icahn if he gets more than what he paid for his shares.

That may be ok given the other news that popped up yesterday.  AP Reports that Google is now the most popular web site in the United States according to comScore Inc.'s rankings.  Yahoo! comes in at around 140.6 million unique visitors while Google barely passed it at 141.1 million.  More people still stick around Yahoo! compared to Google because there is more content there.  Microsoft came in third at 121 million.  One would think that with barely a difference between the first two and 20 million or so between one and three that there would be less discrepancy between revenues each company generates from the web.  Google leads them all by huge amounts.

Microsoft has stated that it wanted Yahoo!'s talent as much as its web properties to better position competition with Google.  I can only ask the same question I asked when this first started in February:  How can two also-rans come up with strategy together when they had none separately?  Carl Icahn doesn't care.  He just wants to sell his stock at a premium to Microsoft.  Good luck with that.  I think Google is the only one to come out of this mess with the fewest problems.  They'll say otherwise, but don't believe it.

May 15, 2008 | Permalink


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