Comments on: A Modest Proposal To YHOO and MSFT: Spin Out A Search Company

By: yutube

yutube — Tue, 26 Feb 2008 00:01:28 +0000

yav eklesene a.q thaks youu işte

By: arto

arto — Mon, 01 Oct 2007 05:38:37 +0000

A second and substantial reason to do this is to stop trying to kill each other in the race to catch Google. Separately, neither company is going to catch Google anytime soon. Why not work together, combine resources, and give the world what it really wants – a legitimate answer to Mountain View?

By: Риэлтор

Риэлтор — Wed, 26 Sep 2007 20:15:47 +0000

I do not think that it happens. For Yahoo it can also the positive party, but whether it will go to harm MSN?

And as it till now has not occured, Microsoft probably have thought again.

By: Kalkan Antalya

Kalkan Antalya — Tue, 25 Sep 2007 20:52:26 +0000

My humble belief is that the problem is not necessarily with size or even scope but in the hierarchical and territorial nightmare that’s been created by both behemoths.

By: Hercule DB

Hercule DB — Fri, 16 Mar 2007 17:29:24 +0000

Phenomenal post and responses on your "Modest Proposal."

I think it is Microsoft and Yahoo's only real chance. The objections are just that, "objections" all of which can be overcome by determination, cash and most importantly, independence from the huge, bloated, pig-dog slow, angst-ridden, risk averse, over-matrixed and supremely ineffectual management and development structure at Microsoft and Yahoo. You nailed the way to avoid the culture clash. Give someone the resources and autonomy to achieve the goal without the baggage. Creates something new and better. That means "support it" don't "manage" it.

Will they listen to you, John, or to anyone with anything other than Meager Proposals? Let's not kid ourselves. The wax in their ears is so thick the sound of the space shuttle couldn't penetrate it if they were standing six feet away from launch.

Dare you to do it Steveb. I double-dog dare you. I triple, double-dog dare you. Yelling, screaming, pounding your fist, intimidating your staff and throwing chairs will not make Google go away. Fund and support something daring and then get the hell out of its way.

By: Heptarch

Heptarch — Thu, 15 Mar 2007 16:34:55 +0000

Sir… it seems far more reasonable for Yahoo and Google to partner against MSFT!

By: Stephen Fraser

Stephen Fraser — Thu, 15 Mar 2007 15:04:17 +0000

I hate to join the skeptics, but as much sense as your proposal makes neither company shows any sign it is capable of managing this kind of collaboration. Even if factions willing to combine forces within Yahoo and MS managed to get a green light I suspect the result would be a mess. Panama may be an improvement, but Yahoo let the Overture technology get stale for years. MSN is terrible and in my opinion shows no promise. Odd as it may sound, I no longer believe MS or Yahoo will threaten Google. Instead we may see an upstart arise in the next few years in the form of a startup working on applications built around niches.

By: Ruralist

Ruralist — Thu, 15 Mar 2007 15:03:00 +0000

Does it make any difference that Yahoo is a Unix shop and Microsoft, to say the least, isn't?

Sounds like culture clashes waiting to happen.

By: Scazza

Scazza — Thu, 15 Mar 2007 04:01:02 +0000

Also should point out that Yahoo is tied into alot of ISPs and cable companies (like Rogers in canada), which would benefit them when they finally release their IPTV software later this year. They could use yahoo as another breakthrough to push the technology again.

By: Oracep

Oracep — Thu, 15 Mar 2007 00:36:54 +0000

84%-Great tight post, John, and a lesson in good writing for the blogosphere. The high Coned paragraph ratings say it all:
75%] One of the longer bomb predictions made by a number of analysts and pundits in the past 12 months has been the following: Microsoft will take its pile of cash and massive market valuation and buy Yahoo. Hell, I even suggested it. The logic goes something like this: Combine the two companies’ reach and search share, their CPM advertising businesses and various other plays, and you have a behemoth that can take on Google.
88%] Fine, except I don’t buy it anymore, mainly because I think both companies are not well positioned to deal with a successful merger. And, I think there might be a better way. Now, those of you who read regularly may recall my LiveSoft post a year ago, in which I suggested that Microsoft set its Internet businesses free. Well, thanks to many folks who work in the industry (and one in particular who will remain anonymous for now), my thinking has evolved. I no longer think Microsoft should spin out LiveSoft, nor do I think it should buy Yahoo. Instead, it should roll out a new company that focuses on one thing: Search monetization. But it shouldn’t do it alone. Instead, it should be a joint venture with Yahoo.
Whaaaaaaaaaaaaaa?
86%] Hear me out. Everyone knows how difficult it’s been for both Yahoo and Microsoft to beat Google at its own game – search. Yahoo has been beat up for years over its lackluster monetization efforts – after initially gaining plaudits for its bold purchase of Overture. And over at Microsoft, search is still at the Windows 1.0 phase, and the rumblings I’m hearing out of Redmond are not encouraging. People are leaving, search share is dropping, and recruitment is tough.
85%] But then again, both companies bring a lot to the table. Yahoo did a great job combining several engines into one solid organic search performer, and early reports on Panama are also solid. Microsoft has an innovative approach in its demographically-driven AdCenter. Both companies have significant traffic of good intent. For building search companies, Yahoo is in the right location. Microsoft has huge market cap and cash. Both need to do something, quickly, to prove to Wall St. that they can compete with King Google.
71%] So why not join forces, like back in the good old days when Overture fed both Yahoo and Microsoft? Such a venture solves any number of tough problems. For example, it lets Yahoo and Microsoft focus on what they are good at. For Yahoo, that’s digital lifestyle applications and services and the CPM ad revenues that come with them; for Microsoft, it’s Windows and Office (and MSN, I guess….). Despite the packaged goods mentality displayed by the “well, we’re done with Vista, now we can focus on search” approach, the initial response to Vista is proof enough Ballmer & co. might want to keep its engineers focused on the product that drives the majority of your revenues – Windows. And little birdies all over the Valley tell me folks at Yahoo are tired of the search-driven fire drills there, they want to get back to the cool stuff like Pipes….
100%] A second and substantial reason to do this is to stop trying to kill each other in the race to catch Google. Separately, neither company is going to catch Google anytime soon. Why not work together, combine resources, and give the world what it really wants – a legitimate answer to Mountain View?
90%] The company might work like this. Because Yahoo is further along with Panama and YPN than Microsoft is with AdCenter, Yahoo gets more credit in the JV for that asset class. Microsoft, because it has more cash, funds the lions share of the JV. Should each company also toss in organic search? To be discussed, but not necessarily required.
78%] The new company, let’s call it Soverture, is owned 50% by each party. Each party also throws in – and this is very important – a long term (ten years?) contract binding it to using Soverture’s services in both direct search monetization (AdWords) and across its properties where it has a syndication play (Facebook, eBay international, etc.). Top talent is assigned into the company, and it’s located in the Valley, so recruitment is easier.
84%] Soverture is then released to develop a killer search monetization solution, one that is unfettered from the current political and structural woes of its parent corps. Spin another 20% out in an IPO, and set the company on a path of providing an alternative to AdSense. The timing is perfect – a ton of AdSense contracts are coming up soon (Ask, for example), and with all that cash from Microsoft, Soverture can afford to buy the business while it develops its way to parity with AdSense.
100%] OK, I’m going to stop writing now, and ask you all: Is this crazy? I know there are tons of reasons why this would NOT happen, but it also makes a lot of sense, no?

Oracep Technologies
http://www.oracep.com