Yahoogle’s Demise: Yahoo’s Loss Could Turn Into A Win; Doubts About Microsoft’s Interest

imageWith Jerry Yang seeming to beckon Microsoft (NSDQ: MSFT) back to the bargaining table now that its search ad pact with Google is dead, ad executives speaking in between sessions at Ad:Tech NY think the company should try to right itself instead of seeking another savior. Most ad agency execs I spoke to throughout the day weren’t even aware the planned Google (NSDQ: GOOG) partnership had been scuttled. Still, no one was remotely surprised by the news.
As for what this means for Yahoo (NSDQ: YHOO), there was less certainty. One exec, who didn’t want to be identified because of work the company does with Microsoft, said Yahoo’s situation is akin to hitting bottom, giving it the opportunity to decide where it wants its place in the search business to be — or if it wants to abandon the space and build on its stronger display. Overall, several people said they thought attempts to resurrect the Microsoft talks would ultimately be fruitless. As for those willing to go on the record, there was a lot of indifference. Matt Spiegel, CEO of Omnicom Media Group Digital, said: “I don’t know if this is what Microsoft needed to make a decision or if they still don’t care.” Would a Microsoft tie-up benefit Yahoo and what about the impact on competition in the ad industry? “Short-term, maybe not — but long-term… maybe.” Other comments on Yahoo’s future after the jump.
A minor blip: Spiegel seemed to agree with Yahoo’s earlier statement reacting to Google’s withdrawal: it was just an incremental part of their overall search business. “It might have become a big deal, which is why the DOJ spent so much time paying attention to it. But this was not going to move the needle significantly for Yahoo; for Google, this was much less of a concern. But now, Yahoo doesn