January 15, 2004

"This will mean virtually nothing to Google" from a business perspective, Sullivan said. "I don't know how much money they were making, but I'd be surprised if it was in the tens of millions. The real money in search is in ads, but Yahoo never carried Google's ads...What you really want to understand is the reach of their ad networks. That's not changing."

Sullivan said things will get even more interesting when Microsoft gets its Web search act together, something he said he expects by the end of the year.

Semel on Wednesday said that Yahoo has expanded its deal to offer Overture's paid search results to MSN's sites throughout Europe and Asia, adding to an existing deal throughout the United States and the United Kingdom.

But the boost from the MSN deal could be short-lived, Sullivan said.

"By the end of 2004, MSN will get their act together," he said. "Then the worry for Yahoo is that MSN will prove to be a temporary boost for them."

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Story by Evan Hansen and Jim Hu
Source: C-Net News

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