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Showing posts from July, 2007

Yahoo! Continues Its Death Spiral

Yeah, I know - melodramatic title. People have been predicting the demise of Yahoo! for over a decade now , typically without much success . Still, there's something about the company's behavior over the past couple of years which makes me think Yahoo!'s days - at least as a dominant player on the Web - are numbered. For starters, Yahoo! is barely treading water in their core search business, while Google continues to grow rapidly. At the moment Google's growth is apparently coming at the expense of rivals other than Yahoo! (witness Microsoft's market share decline), but sooner or later Google's going to have to target Yahoo! directly if they want to continue to grow. Since each 1% of the search market is worth about a billion dollars in revenue according to what I've read online, that gives Google a massive incentive to fight it out with Yahoo! for every percentage of the search market they can gobble. Yahoo! does own Flickr now, which has a great im