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 Send to email | Week In Review: Yahoo Breaks Up With Microsoft, Rebounds With Google in NWSGOOGAAPLYHOOMSFT |  By Silicon
el 14-Jun-2008 |
jerry-yang-official-200x150.jpg: Paste this image in your site, Myspace, Facebook, Ebay copy this code...
 Jerry Yang's days of fighting both Microsoft (MSFT) and Carl Icahn may finally be over. Yahoo (YHOO) announced that it was done trying to patch together deal with Redmond, then promptly announced that it was going work with Google (GOOG) on a non-exclusive deal to run Google's ads on Yahoo's search results. Upside for Yahoo: About $800 million a year in extra revenue. Henry Blodget is one of the few pundits to say he likes the deal, arguing that while Yahoo's search business is ultimately doomed, the arrangement buys Yang time to fix what's left of his company.
Microsoft will almost certainly challenge the Yahoo-Google deal on antitrust grounds (irony noted by everyone, thank you very much). But barring help from the Feds (ditto) Ballmer now finds his company all but locked out of the search market. Microsoft has few options left, and none of them look very good to us.
Apple's iPhone 3G (AAPL) debuted, and it's pretty much exactly what everyone expected. The must-know details: it's much cheaper ($199) up front, but data access rises $10/month; it supports external applications (potentially a $1.2 billion dollar a year industry), and you can't buy it until July 11. Still no copy-and-paste.
Facebook is now pulling even with News Corp.'s (NWS) MySpace at 115 million uniques a month. We also saw MySpace announce a re-design, as Facebook announces a developer's conference to introduce tweaks of its own. Here at SAI, watching two evenly-matched brawlers pound on each other for 15 rounds is our idea of a good time. Stay tuned.
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