I’ve written before that Yahoo has their fingers in so many pies that they don’t have the necessary attention on search that Google does. Google buys small companies that offer services, software and add-ons which increase the value of the search experience.
Yahoo buys companies when they think they might be able to squeeze some extra bit of profit from them and add to the already confusing array of services which take an alphabetical list of 109 Yahoo “properties”, broken down by each letter of the alphabet.
Yahoo bought up all the available search “properties” within the last couple of years and, as I said in mid-July of 2003, “Well if it is a horse race, Yahoo may gain on leader Google if they are able to integrate their Inktomi and Overture (and by extension, Altavista and Fast/AllTheWeb) purchases into relevant search results that searchers trust. But all of the Jockeys on those horses will be whipping their charges toward the finish line with an eye to the winning purse.”
The fact is – Yahoo search is no better than Google now that they have bought up all real competitors. Referred traffic from Yahoo search results to web sites is still only one fifth that of Google.
The new MSN search may pose a threat to Google if they continue on their current path toward relevant search results. As of October 2004, Google market capitalization of $52 billion with shares hovering around $160 per share price, reflects the true value of Google.
Yahoo is kind of like a WalMart “Portal” that has everything under one roof with over a hundred wildly diverse “properties” that don’t contribute to search relevance or company value. Google confirmed today that they have no intention of becoming a portal, but instead intend to keep the laser focus on search that made them number one. This emphasis was underlined by CEO Eric Schmidt’s comment in the Financial Times of London, “We are not building a browser.”
Now the market has confirmed what searchers already know, that Google is tops in financial relevance as well as search relevance.