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Insight/ Online Media

Yahoo's Missed Opportunity: The Social Web

As far as I can tell, Yahoo did a lease/sale deal with Microsoft, thereby exiting the growing online search business to focus on the fragmented, super-competitive, online media business. Yahoo CEO Carol Bartz and her advisors said they could not marshal the capital to fight against the billions in R&D that Microsoft and Google were spending and planning to spend on search. Yahoo's mistake is that they want to fight the last war—traditional search and traditional "portal" control. What the Yahoo executives missed is that the hottest part of the internet—the social web—takes tiny amounts of capital and is garnering a lion's share of the incremental growth in attention.

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