Yahoo

Verizon and Yahoo Extend Portal Partnership

Bernie — Wed, 03 Sep 2008 22:12:53 -0400

Verizon and Yahoo announced an extension of their portal relationship. The Verizon-Yahoo! co-branded portal is made available to Verizon high speed Internet users and offers a variety of Yahoo powered Internet tools and applications. The portal will offer Yahoo! Search, and co-branded e-mail, Instant Messenger and Toolbar applications. “Yahoo! also will provide search and display advertising on the co-branded portal and e-mail application, and both companies will share the search, advertising and e-commerce revenues generated by users of the co-branded portal,” said Verizon in a company statement. The partnership began in 2005, and this is a "multi year" extension.

Portals have long been used by broadband service providers to add additional value to their service, and hopefully generate a little additional revenue as well. As broadband empowers more utility and multimedia applications, broadband service providers are looking for ways to empower their customers to take advantage. It’s one minor step away from the “dumb pipe” argument, where carriers look to add value to their broadband service and not just provide straight connectivity.

Yahoo Outsources VoIP to JAJAH

Bernie — Tue, 29 Apr 2008 23:56:39 -0400

Yahoo and JAJAH announced a partnership where JAJAH will operate Yahoo! Messenger’s VoIP platform. Yahoo! Messenger is Yahoo’s instant messaging (IM) platform, and JAJAH will manage PC-to-phone and phone-to-PC voice calls tied to it. JAJAH will take over the provision of the telephony infrastructure, payment processing, and customer care for Yahoo!'s premium voice users who make and receive voice calls through Yahoo! Messenger. Yahoo! Messenger operates in 200 countries with nearly 97 million users worldwide (comScore, February 2008). JAJAH operates an open source VoIP platform, and currently claims over 10 million users.

Yahoo Looking to AOL to Fend Off Microsoft

Bernie — Thu, 06 Mar 2008 08:07:34 -0500

The Wall Street Journal is reporting (subscription required) that Yahoo is courting Time Warner to combine AOL and Yahoo into a new company, with Time Warner holding a minority stake. The effort is an attempt to either stop Microsoft’s Yahoo bid, or at least force them to sweeten their offer. Whatever the outcome, it appears that Yahoo will enter into some transaction that will significantly alter the online search and advertising industry and will certainly impact the mobile wireless arena as well. Time Warner is reportedly putting the “finishing touches” on a proposal, which will soon be given to Yahoo’s board. In a separate note, Yahoo delayed the nomination process for its board to thwart a proxy fight with Microsoft. See the below video for more details.

The Wall Street Journal postulates that Microsoft is still likely to prevail, despite Yahoo’s efforts to court others, including AOL and News Corp. The implications on the Internet business are somewhat obvious. But a combined Microsoft and Yahoo would become a true wireless powerhouse as well. Both companies have well defined wireless strategies. Microsoft has Windows Mobile which will ship on over 20 million handsets this year. Yahoo has developed a suite of wireless applications that are featured on several wireless carriers including AT&T and T-Mobile. Both Yahoo and Microsoft have an interest in slowing Google’s wireless foray, Android. The next frontier for the Internet, search, and advertising is mobile wireless. Globally, mobile handsets will soon take over as the number one way that consumers access the Internet. Yahoo would be a prized asset for any company looking to effectively compete in this new frontier.

Microsoft-Yahoo Combination Could Create Wireless Juggernaut

Bernie — Mon, 04 Feb 2008 12:15:46 -0500

Let the speculation begin. Microsoft’s unsolicited bid for Yahoo has the tech world abuzz. There are numerous implications if such a merger were to materialize. We’re far off from that happening - it will take some time to shake everything out. There are already rumors that Yahoo is exploring other options, including an alliance with Google to either thwart the Microsoft bid, or try to extract a bigger selling price. Perhaps one of the more interesting implications centers on wireless. Both Yahoo and Microsoft have impressive wireless strategies. Among the more obvious goals of this Microsoft bid, it may also be an attempt to head off Google advances into the coveted wireless space.

Yahoo and Microsoft have some pretty impressive wireless forays already. Microsoft’s mobile operating system, Windows Mobile, is on 150 handsets and is available from over 100 different wireless operators from across the globe. Windows Mobile will ship on about 20 million handsets this year alone. Yahoo has struck wireless alliances with the likes of AT&T, Vodaphone, T-Mobile, and Rogers to feature Yahoo mobile wireless applications, including ad and search capabilities. A combined Microsoft-Yahoo could create a compelling integrated suite of services for wireless operators and consumers that may trump anything Google tries to do with Android. Mobile wireless represents the next big growth engine for broadband. Microsoft, Yahoo, and Google understand that, and they are now positioning themselves to take full advantage of it.

Microsoft Bids for Yahoo

Bernie — Fri, 01 Feb 2008 09:34:39 -0500

In an attempt to meet Google’s competitive challenge head on, Microsoft has bid $44.6 billion dollars to acquire Yahoo. Yahoo, while still a premium Internet brand, has been battered by Google and is in probably its weakest position since it began. Microsoft offered $31 share, which represents a 62% premium over Yahoo’s last closing price. If approved, this would be one of the largest business takeovers in history. The implications of a combined Microsoft – Yahoo are enormous. Their combined leverage in software, search, Internet advertising, content, and mobile would create a behemoth of a company, quite capable of meeting Google’s growing dominance.

View a Microsoft PowerPoint presentation detailing the transaction here.