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Now that the tech industry has had a few days to digest the blockbuster ad deal that Yahoo signed with Google, numerous commentators have declared it a death knell for Yahoo's search-ad business.
The charge was that by giving Google a portion of its search ads, Yahoo was essentially admitting defeat, heading down a slippery slope that would see Google increasingly overtake its business.
But some say Google had already won the search game. Jim Lanzone, the former chief executive of Ask.com, argued that no industry realignment could break Google's commanding hold on the search market -- so this deal doesn't do much to tilt the balance in its favor.
Instead, he thinks that this deal will give Yahoo some extra money to focus on building its audience without significantly eroding its own advertising business. |
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