Google + Yahoo = GooHoo - InformationWeek
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5/9/2008
03:55 PM
Eric Ogren
Eric Ogren
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Google + Yahoo = GooHoo

Google co-founder Sergey Brin recently said, "We have been talking to Yahoo and we are very excited to be working with them." The goal? Tie the two companies into an advertising powerhouse, which I have decided to call GooHoo.

Google co-founder Sergey Brin recently said, "We have been talking to Yahoo and we are very excited to be working with them." The goal? Tie the two companies into an advertising powerhouse, which I have decided to call GooHoo.Mashing up the words Google and Yahoo is too much fun. There's Yahoogle, GooHoo, Yoogle, Gahoogle, Gahoo, you get the idea. Even though Microsoft decided to walk away from its attempted acquisition of Yahoo, it appears as though Yahoo is still pursuing the defensive strategy of teaming up with Google.

The good news for Yahoo is, Google appears to be a willing partner. "We share a lot of values with [Yahoo]," said Brin.

The two companies have been negotiating a deal, but neither has disclosed how far along the deal is. Google and Yahoo tested an advertising program last month that lasted two weeks. Google's software did a better job than Yahoo's at placing profitable text ads alongside search results, and Yahoo is considering its options. Using Google's software, rather than its own, could bolster Yahoo's earnings and stave off another acquisition attempt from Microsoft. In fact, part of the reason Microsoft dropped its bid for Yahoo was because Yahoo was so quick to sidle up to its largest competitor and get all comfy.

But GooHoo would raise a lot of issues. Would any combined entity or services fall under the term monopoly? What antitrust concerns would there be? Google said it already is considering its options to defend against such accusations. "If there were a deal [with Yahoo], we would anticipate structuring the deal to address the antitrust concerns that have been widely discussed," said CEO Eric Schmidt.

I suppose we'll see about that.

In the meantime, we have to sit back and wait to see what develops between the two online portals.

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