Further from our post about Microsoft trying to buy Yahoo and the consequent fallout, Yahoo have responded to shareholder criticism in true Multi-national fashion by creating a Powerpoint presentation.
You can read the full the presentation here, what it says makes fascinating reading and if you've been following things closely what it doesn't say even more so!
Particularly the agreement with Google with regard to Yahoo carrying Google's PPC, Adsense. It confirms our original opinion that basically Google will make money out of this deal, Yahoo will make money out of this deal and Live are screwed! Yahoo announced pretty pronto after the deal was dead the other deal with Google, yet we're know told that Yahoo are still open to a deal with Microsoft.
Given the Google deal goes through are Yahoo now telling me that Google are happy to have it's adds carried on a Microsoft owned Yahoo, whereas I know Google aren't stupid and having agreed the deal with Yahoo there would have more than likely been something in the agreement about the ownership of Yahoo, ironic that to me the Google deal means the death of the Microsoft deal and in fact that's exactly what happened.
Yahoo even present a hybrid of what an actual page of results would look like which looks nice for the stockholders but is rather misleading. Basically someone goes to Yahoo and does a search if they're not interested in anything yahoo has to offer, that is is either Organic and PPC then Yahoo appends Adsense adds where no-one really bothers looking.
Umm, it's here that contradictions really appear. Originally when the Yahoo - Google deal broke an exec was quoted saying it would make them an extra $800 million. Now they're saying it's between $250 - $400 million. Now a little recalculation and more detailed look at the figures and we'd expect a drop a little but $400m. What we want to know is what the exec who quoted $800m was on as we would like some?
Originally Yahoo admitted that Adsense would be displayed because no-one really bids on long tail keywords and Asense has them in abundance, or basically Yahoo makes very little on something Google has cornered the market in, in which case the proposed Adsense adds would ,at the very least, be appearing much higher, even as high as the top positions in some cases. In fact if we were to take what was originally said at face value they'd be the only PPC add's.
Forget what Yahoo say, they know what people are bidding on, in the Yahoo network, call it 'x'. They will take a percentage cut of any Adsense keyword, lets call it 'y'. So if y makes Yahoo more money than x which adds are they likely to carry?
Finally we've done the testing and we've seen other tests, The fact is Search Engine Users don't pay much attention to PPC Adds beyond the top two or three positions which are directly, above organic listings, in fact we know this is a fact as we've seen it applied over a number of different sciences
Now we don't think Yahoo are that stupid, although their shareholders may disagree, but we know and we know that Yahoo know that actually where they're saying they are placing the Google adds now won't make them anything near $250m per year.