Yahoo’s got an interview with Mike Arrington who provides some excellent and concise commentary on Yahoo’s demise, including at the end of the interview his prediction that the interviewer will be …. out of a job soon.
I think the *key* point Mike makes is that where Google gets about .09 per search on average, Yahoo gets about .04. He notes this is partly demographic and partly due to Yahoo’s search monetizing deficiencies that were supposed to be rescued by project “Panama” but were not. I think this is per search query rather than per click on a search ad, but the point is the same – Google makes more than twice as much per search action, and this is a crushing advantage to have over Yahoo.
So, what is the endgame for Yahoo in the Microsoft deal? We should know soon if the rumors of a News Corp deal are well founded or hyped up. Some are suggesting that it’ll be very hard to fend off Microsoft in any case as they are likely to bid $35 per share soon which will about equal the rumored News Corp deal of about a 50 billion valuation for Yahoo.
Disclosureizing: Long on Yahoo