Friday, September 3, 2010

Yahoo!: Aigoo!

Yahoo! is hurting a bit as NHN bails on the American company, famous for its high-tech search engine named after low-tech rednecks, in favor of its own technology.

From the San Francisco Chronicle:
Yahoo's biggest search affiliate, Korea's NHN, is taking search in house. (NHN runs Naver, Korea's biggest search engine.)

According to Doug Anmuth of Barclays, this will cost Yahoo an astounding 10% of gross revenue in 2011.

Fortunately for Yahoo's bottom line, the impact on Yahoo's net revenue (after paying a 95% revenue share to NHN), will be much smaller, perhaps 1%-2%.

But losing 1%-2% of revenue in a customer defection is not what Yahoo needed right now. It's also bad news for the Microsoft-Yahoo alliance, which will lose some advantages of scale.
I remember a time when major business deals between Korean companies and their American, Japanese, or European partners were a very big deal, and the idea of any but the very biggest of those Korean companies bringing hurt to major American players was, well, preposterous.

In other high-tech joint venture news, Hynix has agreed to join up with HP to produce a new type of memory chip that is expected to be a hundred times faster at storing data. It's expected to be used in phones, MP3 players, and cameras.

Sphere: Related Content

No comments:

Post a Comment

Share your thoughts, but please be kind and respectful. My mom reads this blog.