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Breaking: Google and Yahoo Search Partnership Not Microsoft – Yahoo on the Move? It’s a Private War in Silicon Valley June 12, 2008

Posted by John in Technology.

Talk about game on – Here we have the battle of the century evolving in front of our eyes. Bloggers like me, Kara, and Mike all sitting in the front row. Sources are saying the announcement will be a search partnership between Yahoo and Google NOT Microsoft. Bloggers are confirming an announcement only. A formal release from Yahoo went out that Microsoft is out.

In a weird way it’s filled with action. However, there is collateral damage. It’s a little secret in Silicon Valley that VCs aren’t investing and the angel market is tight. Why? There is a private war going on but with a public backdrop of the Yahoo/Microsoft/Google action. Depending on how the shoe drops with Yahoo/Google/Microsoft it will have innovation implications across the board. Until that shoe drops the tech capital markets (public and private) are grinding back and forth.

I’ve been saying for sometime Silicon Valley can be a strange and special place. One thing for sure about Silicon Valley is that there is a culture of entrepreneurship. Stanford in at the center of it and so are the VCs. From the beginning I’ve said that Yahoo is executing what I called the “Silicon Valley Poison Pill”. Yahoo does not want to be sucked up by Microsoft. Even with a deal on the table and close to being sealed (as I reported last month). Yahoo appears to be running to Google -a bedfellow from Stanford. Remember Google’s big deal when they started was the search deal with Yahoo – built up from their connections to Yang and Filo at Stanford.

A search partnership between Yahoo and Google is possibly a red herring or even a bold move by Yahoo. I blogged last month the Yahoo deal with Microsoft was on the 1 yard line. Why Microsoft can’t punch it in??? It’s the Silicon Valley Poison Pill in action.

Implications are big.


1. Microsoft Counters - War with Google Continues - Bombs Dropping « Furrier.org - Business & Technology Blog - June 13, 2008

[…] Update: the Google responds to the big story that Yahoo is going with Google not Microsoft. […]

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