Valley Chai

the media rumor-mill aside, the message from yahoo management aside, the decision tree leading to yahoo!’s test of google’s adsense for search product for it’s sponsored search ads is perplexing. look at the two possible outcomes of the test -

(a) a success - i.e., google’s adsense for search performs better than yahoo’s own sponsored search results
(b) a failure - i.e., google’s adsense for search performs poorer than yahoo’s own sponsored search results

if (success) -> means yahoo would have to now go ahead with the full-scale adoption, and shareholders might well force that move, damn the regulators. -> google would be happy, yahoo’s employees pissed/let go/start praying for msft acquisition to keep their jobs. this is a no-win for yahoo.

if (failure) -> employees may be pissed for trying this experiment, but will be happier that their product is superior - but it buys you nothing., assuming that employees feel that way anyway. but importantly, it also means yahoo has lost a perceived alternative on the table, strengthening microsoft’s hand in the negotiations - a no win again

if this was done as simply a ploy towards a positive outcome, i beats me on what that is!!