Wednesday, March 14, 2012

Nose, Meet Face. Spited Much?

     With news of a potential sale of their ad platform, Yahoo is trying the  "throw anything at the wall and lets see if it gets us back on the right track"strategy. According to Kara Swisher, Yahoo hopes "to turn a cost center into a revenue source" and outsource the entire platform to a third party. 

     In a word: NO. Don't do it. Does Scott Thompson know how Yahoo makes its revenue? They have no magic online product that they can charge for, nor do they sell any tangible good. They are solely "a premier digital media company", or in short a company built on advertising. Why would you then outsource the one thing that you do to a third party. That would be like Ford outsourcing the full production of their cars to an auto shop. It doesn't make any sense on paper, nor does it make any sense in implementation. This just shows Yahoo is reaching a desperation point and is willing to rob Peter to pay Paul. Yahoo is willing to do anything in order to eke out a few more months of survival including cutting off its nose in order to spite its face, even if that means using some (dubious) patents to sucker punch other companies when they can't respond. 

    I hardly think that this is the last that will be heard from Yahoo. They are a desperate company who is just realizing that the music has stopped and they are without a seat in the game. I fully expect that Yahoo will use its thousands of patents to make more foolish moves, further ostracizing itself from the tech community. It wouldn't be surprising if Pandora slowly found Yahoo's targeting bulls-eye on them next for Yahoo's patents that relate to music, like this, and this.

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