Google to Yahoo - Beware the Microsoft Poison!

Google is concerned that Microsoft could poison Yahoo with an aquisition, making the combined company less open, a state of affairs Google feels is key to the internet environment and was key to the sucess of Yahoo and Google.

It is easy to be sympathetic to the idea of openness and transparency as core values, but I would suggest that Google has more than enough internet opacity in their search ranking practices to make me skeptical of all their whining about how Microsoft won't play fair if they get a foothold in the search game.

It is true that Google has been more open than most companies, but they are still far less responsive to ranking problems and search issues than they should be. To the extent MS + Yahoo brings more competition to the space it might help Google see the light and practice more of what they preach about transparency. (A quick example of the lack of transparency - Google does not share with publishers the advertising revenue share for a publisher's own website. This would be a totally unacceptable practice offline but reflects the huge control Google now exerts over internet content and search monetization.

Meanwhile, Henry Blodget has some great advice for Yang and Balmer, but it’s clear to me that neither party will view things this broadly. I think there is only small difference in the IT worldview of management at Yahoo and Google, but a world of difference with Microsoft.

The contest for Yahoo is a fascinating situation because up until now Google has been very happy to watch Yahoo whither on the search vine. Now Google needs to consider a powerful partnership as a defensive attack on the Microsoft search potential after an aquisition.

Disclosure: Yahoo Shareholder : )