John Paczkowski

Recent Posts by John Paczkowski



When Jerry Yang said Yahoo’s (YHOO) board was “continuously evaluating all of the company’s strategic options,” he wasn’t kidding. On Wednesday afternoon, Yahoo announced a two-week trial advertising partnership with Google (GOOG), an alliance that – should it blossom – could herald Yahoo’s concession of search advertising to Google and perhaps a postponement of the seemingly inevitable sale to Microsoft (but nothing more). Then, just a few hours later, The Wall Street Journal reported that Yahoo is nearing a deal to combine its Internet operations with Time Warner’s AOL. The deal would see Yahoo acquire AOL in exchange for the media conglomerate taking 20% stake in the resulting monstrosity. Yahoo will no doubt spin such a combination as one that would bolster its domestic market position. But rather than a synergistic powerhouse, a merger of these companies is more like two louts coming together to make one cretin. Not exactly a proven formula considering recent history. AOL+Compuserve = FAIL. AOL+Netscape = FAIL. AOL+Time Warner = FAIL. AOL+Yahoo? Good luck pitching that one to your shareholders, Jerry. Especially if Microsoft manages to convince News Corp (NWS) to mount a joint, and presumably sweetened, bid for Yahoo.