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Sure, Yahoo! is practically a historic landmark, the last of the pure dotcom plays from the wild 1990s. But brace for impact: Microsoft hasn't even promised to keep the Yahoo! brand alive. ("That's a question we haven't answered yet," purrs Yusuf Mehdi, Microsoft's senior vice president of strategic partnerships. Really...
...your résumé up on Yahoo! HotJobs just yet. There's a war for talent in Silicon Valley, and Microsoft is bleeding troops to Google (which is bleeding troops to Facebook). Microsoft needs you. Just keep muttering something about cloud computing. That's hot right...
...least the way Microsoft spins it, which is that a combined, more muscular Microsoft and Yahoo! makes a more credible challenge to Google, which helps advertisers, even though there would be two space sellers instead of three. Rob Norman, CEO of WPP's GroupM Interaction, the world's largest media buyer, is cautiously optimistic. "It's a qualified good," he says, "because in an auction atmosphere, you're competing against other advertisers more than the auctioneer itself. The deal won't give you leverage against Google, but it could give you choice, and more choice is always positive...
...already a winner, since you're a buyer in a market where supply greatly outstrips demand. Seriously, if Microsoft's $44.6 billion bid for Yahoo! means one thing, it's that advertising--not subscriptions or surveys or micropayments--is the engine that Internet content will run on. This is a victory party for online advertising's long boom. According to a Yankee Group report, online advertising rang up $16.9 billion in revenue in 2006 and could grow 24% a year or more. It's still a pretty meager slice of total ad spending--only 7.5% last year, according...
That's the obvious stuff. Now for the subtle stuff. As Google and Microsoft get more competitive over ads, you'll see new kinds of ads, and in new places, like on your cell phone. Your traffic will become more valuable, and you'll see, if you look carefully, underhanded ploys to secure it. Microsoft has pinned a lot of its hopes for future growth on this business. The risk with a huge, diversified entity like the merged Microsoft-Yahoo! is that it would get up to dirty tricks like diverting Web surfers to its own pages rather than...