Yahoo bonanza bodes well for Google
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INTERNET media bellwether Yahoo&#39;s third-quarter earnings more than tripled, helped by profit booked from the sale of Google shares into the search engine&#39;s recent flotation and stronger advertising revenues.
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I've submitted my bid to buy shares of Google Inc. in the computer search company's giant auction-style initial public offering. That could turn out to be the good news or the bad news.
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Software giant is eager to gain traction in competitive search engine arena.
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There's plenty of good news out there in the technology sector, particularly when it comes to e-commerce powerhouses like eBay and Amazon, and portals like Yahoo.
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Microsoft has the software. Yahoo! has the ad revenue. Together they can challenge Google. Among the likely winners: online advertisers.
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Google has a problem -- a good one.
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Microsoft has offered to buy Yahoo for $44.6 billion -- but how did a company that started so small come to be worth so much? That's a story that began in the early days of the World Wide Web, when people were struggling to keep track of the new world of multimedia it offered them.In those days people viewed the Web through NCSA Mosaic, a browser that helped popularize the Web; they could check the level of coffee in the Trojan Room coffee machine at Cambridge University using the first Web cam on the Internet, and they could read the headlines on the NandO Times, one of the first "new media" operations.Yahoo first appeared on the Internet in 1994 when Jerry Yang and David Filo were still at Stanford University -- something that was immediately obvious from the site's first address: http://akebono.stanford.edu/yahoo/. It wasn't until later in 1994 that the easier-to-type http://www.yahoo.com came along, but even then it redirected to the Stanford server.But back in 1994 people weren't that concerned about clunky addresses. They'd been living with the text-based Internet for years and the Web with all of its richness had people hooked. Yahoo stepped in to solve an early problem: how could users keep track of the fast expanding World Wide Web.What Yang and Filo built was revolutionary for the time: a hierarchical index of the Web divided into subjects like "computers," "government" and "society and culture." (The service lives on today as the Yahoo Directory)Love at first sightFrom the early days it was clear that users loved Yahoo."David Filo and Jerry Yang should be given a Medal of Honor, then locked in a room and never allowed to get lives: they are already doing an excellent job of categorizing the Web with Yahoo's Hostlist," wrote one user in response to a Sept. 1994 Usenet posting asking for a directory of Web sites.Word of the service spread through the Internet, often from enthusiastic users passing on details of the resource, but sometimes with a little promotion by Yang and Filo themselves."We have a pretty comprehensive listing at the Yahoo Database," wrote Yang on Usenet in Sept. 1994. "It's an attempt to be organized by subject (although not very well) -- but we are working on it. Searchable too," he wrote.All the time Yang and Filo continued to live everyday lives, unaware they would become billionaires in less than a decade. A look at old Usenet postings reveals Yang campaigning for fair funding for college students while Filo was trying to trade World Cup tickets online.As 1995 began, Yahoo was serving up 200,000 pages per day from its index of about 25,000 Web sites, and was about to hit the big time. During that year Yang published a book about Yahoo and earned an interview on National Public Radio's Fresh Air. Both cofounders appeared on a PBS Frontline TV documentary about the Internet called "High Stakes in Cyberspace.""What Yahoo does is make your wasting your time easier. It wants you to get where you want to go to waste time faster so you don't have to waste time wasting time," is how Yang explained Yahoo in the documentary, according to a transcript of the show.The publicity came just as thousands of people started piling onto the Web and new sites were popping up faster and faster. As a result by the middle of June 1996 Yahoo had jumped to 9 million pages per day and in the third quarter of that year traffic for the three-month period hit 1 billion page views.Investment in the popular and fast growing site wasn't far behind its rising popularity. In April 1995 Sequoia Capital provided Yahoo with two rounds of venture funding just as Yang and Filo decided to put their studies on hold and start running Yahoo full time."We [hadn't] done anything on our research in the last few months," Filo told CIO magazine in a June 1995 interview. "We had to decide which thing to pursue, and we're not really interested in what our PhDs were in."An initial public offering and international expansion was next on the cards, and by the end of 1996 Yahoo had sites in the U.K., Germany, France, and Japan, and had launched the Yahooligans service for kids.Early competitionYahoo wasn't without competition back in those days. WebCrawler was getting popular and Lycos was also making a name for itself, but none of the search engines at the time fully satisfied people. So it was common to switch allegiances whenever a better service came along. In 1996 many Internet users did just that when sites like Inktomi and Digital Equipment's Altavista launched.But Yahoo managed to endure the competition, possibly because its directory often was a better place to find links that the early search engines.Microsoft was making a late start on the Internet, launching MSN as a dial-up Internet access service in the U.S. in 1995. It wasn't until a few years later that MSN was relaunched as a portal and still more years until Microsoft put its full weight behind developing Internet-based products and services.Like Yahoo, Google also grew out of Stanford University but didn't start to achieve recognition until the end of the decade. Within a few years, however, it had grown to become the leader in online search.Today Yahoo is one of the most powerful online media brands in the world. It has more than 500 million users in numerous countries and its name is recognizable to billions of people.
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For anyone who misses the late '90s, there's an easy way to get a flashback fix. Check out Google's stock. Shares of the Internet search engine Monday soared another &#36;14.97 to &#36;187.40, capping a 120% surge from its initial public offering price in August.
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Google's universal search results will provide savvy Web site owners and marketers additional opportunities to gain valuable placement within search results.
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The search engine giant has made it easier to navigate different media. It's also setting itself up nicely for video ads
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Yahoo Inc. appeared to move a step closer to challenging Google Inc. in searchable Web mail, acquiring the startup behind the powerful e-mail application Bloomba.
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Yahoo Inc. posted strong fourth-quarter profits, driven largely by strong advertising sales and a sizable windfall from sales of an investment.
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If you search for Yahoo Microsoft, this page is the second hit. I like that of course. It's generating a fair amount of flow, since the combination of Yahoo and Microsoft is a pretty hot topic. Keeping the topic going, I think it's pretty amazing that Microsoft wants to buy Yahoo, but then again, which of all their web efforts has captured our imagination? At least Yahoo has Flickr, and when they try something new, we all try it with them (often with not the greatest results). The rambling continues... If Yahoo is into poison pills, try this one out.  Reserve 5 percent of Yahoo's common stock for blogger options. Put us to work to find new businesses for Yahoo, ones that are relevant to our world. When we find them, reward the bloggers with a significant upside stake in Yahoo's future, not the airy-fairy kind, but real stock that we can trade. Handled properly, it could raise shareholder value by much more than 5 percent. Just the kind of deal they pay you to do, oh Yahoo gods and board members.  Of course it'll never happen. It's an idea like the one I keep proposing for newspapers -- that they hire their public editors from the public, independent bloggers with no journalism experience, with no undue reverence for the institutions so revered by journos. They're going away, just like Yahoo is (sad but true). Now what will rise in their place? Imho, something that's home grown, with the integrity of the people, in our interest. The more they invite the public in, the more clued in they will be when we figure out where we want to go with news on the web. It's why I'm excited about the Obama campaign and why I keep giving to it (I'm up to $400 now). I'm excited because so many other people are excited.  I like his idea about tuition for public service for college students. It's so simple. People want to be involved, they want to use their energy and creativity to solve problems. In the 20th century we were couch potatoes. In the 21st we do it for ourselves.  The first tech company that fully embraces this, not just in the form of User Generated Content (what an insult) but by giving us power (that comes from stock) will rule the world. If Y! had the guts, it won't be long before they're making tender offers to buy out Ballmer.  BTW, I think I understand why Ballmer wants Yahoo! When Yahoo engineers wake up they program stuff like Yahoo Live, which is pretty cool and runs on the web, and while it steals ideas from smaller companies, it adds some pretty cool stuff of its own. When Microsoft engineers wake up they program stuff like Vista, a multi-year, multi-billion dollar waste of money, time and customer goodwill. They can't do another Vista without wrecking the franchise. Now the question is -- where do they go for growth? That's what Yahoo is for.
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Yahoo continued to ride the growth of online advertising in the third quarter, but more than half its profit in the quarter came from the success of its rival Google.
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I have good news and bad news. The good news is that Googleâs new Desktop Search program works great on a hard disk full of old e-mails and downloaded Web pages.
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There will be criticism over some aspects of Google&#39;s highly publicized public stock offering, but it shouldn&#39;t overshadow what the Internet search engine company managed to accomplish.
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Yahoo upgraded its search advertising system yesterday, making a high-stakes technology change that lies at the heart of its efforts to catch up to Google in the race for online ad dollars.