Binghoo

Why Weren't Markets More Excited by the Microsoft - Yahoo Deal?

One area that this article fails to acknowledge is that Yahoo's entire revenue stream is based on Advertising, whether Search or Display. While Yahoo's portal content is certainly core to this strategy, I fail to see how giving up on one primary area of monetization (through Search) is gaining Yahoo anything. Yahoo still had a considerable lead over Microsoft in search share, with roughly a total market share of about 18% in the US. Giving this to MSFT appears to be a total loss for YHOO, and its no wonder that the market has responded negatively, especially in the context of a previous $47 Billion offer for Yahoo by MSFT last year. Who's Yahoo'ing now?