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Meanwhile, onetime search leader Yahoo is spending a fortune on mounting a comeback. Yahoo bought Inktomi, a top-flight algorithmic search engine, in March for $235 million. In October it swallowed Overture, which specializes in so-called paid search (we'll get to that later), for $1.63 billion--while Overture was itself in the middle of digesting two recent acquisitions, AltaVista and AlltheWeb. The plan, as near as anybody outside Yahoo can make out, is to stitch all those disparate organizations into one huge Frankenstein's monster of a search engine that will strike terror into the hearts...
...worth about $2 billion, and it's growing at a rate of 35% a year--far outpacing any other advertising medium. What's more, Google, the reigning sultan of search, is looking vulnerable. The combination of big money and big opportunity has attracted some mighty big players, including Microsoft, Yahoo and Amazon. There's a street fight brewing over Internet search that will make the browser wars look like thumb wrestling...
...strongest brands on the Internet--this despite the fact that when they started, they knew nothing about marketing. "That was true," says Page, laughing delightedly. "I guess we were really lucky, you know?" Whatever they did, it worked better than their rivals' approach. Remember how hard Yahoo tried to turn its brand name into an everyday word--those TV ads with the guy with the big Afro asking "Do you Yahoo?" If you do Yahoo, you probably don't call it that. But chances are you Google...
...Yahoo currently partners with Google, but that deal may not last. "I expect them to dump Google," says Sullivan. "I'm surprised they've stayed with them for so long. Inktomi is perfectly capable of doing what they're using Google to do." (Yahoo, which once sank $10 million into Google, doesn't like to talk about its rival to the press; that's a tangled web.) All Weiner will say is this: "We are certainly going to be leveraging all of our in-house search assets to a greater extent...
PDAs of the past were locked up by IT departments, so they could handle only corporate e-mail and schedules. Now users are safely adding personal e-mail accounts from ISPs including Hotmail, Yahoo and AOL. --By Wilson Rothman