John Paczkowski

Recent Posts by John Paczkowski

Nothing Like Changing Your Mindset to Change Your Reality, Eh Yahoo?

yahoogoogle.jpgDesperate times call for desperate measures. And lest there be any doubt that Yahoo’s (YHOO) exploratory search-outsourcing alliance with Google (GOOG) is just that, consider this: Yahoo opposed such a partnership on Jan. 30–the day before Microsoft (MSFT) announced its bid for the company.

According to documents unsealed yesterday as part of a shareholder complaint against Yahoo, the company’s leadership felt an outsourcing deal with Google would be detrimental to Yahoo’s long-term push to become a “must buy” for advertisers.

These documents, prepared for a Jan. 30 all-hands meeting, anticipated the question of whether Yahoo would consider outsourcing search to Google. “We are focused on long-term value creation rather than short-term gains,” Yahoo said in response, adding that such a deal “may not take into account the longer-term impact on the competitive market if search becomes an effective monopoly.”

Sadly, Yahoo forgot to add a very important caveat to this statement: “When you’re not facing a hostile buyout offer from Microsoft.” Because when you are, concerns about long-term value creation and harm to the competitive market apparently cease to be an issue.