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Yahoo! better off without search feature?

Alex Christie

28 May 2008

Are they admitting defeat to Google?

It seems that the folks at Yahoo! have big decisions to make in the
upcoming weeks. Do they sell to one their suitors? If so to which one? Do they themselves make a bid for Facebook? But the most recent rumour is that they are about to sacrifice their search engine function and focus on Social Media.

With Yahoo! conceding its market share in search to Google at a steady rate, it seems that the search element of its business is becoming less profitable and more of a burden to maintain. Without the “burden” of search, Yahoo! aims to focus on connecting and building its social media business and get users into their network and expand content and advertising deals. This does seem to send
the message that they are conceding defeat to the giant, Google .

To maintain their credibility a better option would perhaps be to accept Microsoft’s bid and contract the search function to them. At this point it seems simple question of profit and loss and investment and return. Either way Yahoo! will have to decide… unless they have a trick up their sleeve.



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