Feeds

Yahoo! buys! Overture!

Land grab

  • alert
  • submit to reddit

High performance access to file storage

Yahoo! is to buy Overture, the paid-for-search pioneer, for $1.63bn in cash and shares. This is net of Overture's cash balance, which will be adjusted downwards to pay for two recent acquisitions.

Yahoo! is to expand its paid-for search presence using Overture as well as offering services such as small business hosting to Overture's 88,000 advertisers (most of which can be considered SMEs).

It will be interesting to see how MSN and Google respond to this deal. MSN's contract with Overture ends in December 2005. It seems unlikely that MSN will renew the contract - which means going to Google, or Findwhat.com/Espotting.

Both MSN and Google have sat on the sidelines in the vertical consolidation in the search engine and portal sectors. Overture, on target to hit $1bn revenues this year, has been an active player in reshaping the sector, as predator rather than prey. It cannot have foreseen Yahoo!'s approach - otherwise why would it have bought search engine technology from AltaVista in February?

So why accept Yahoo!'s offer? First, Overture depends upon Yahoo! for a huge chunk of its revenues - 65 per cent of turnover comes from contextualised search on Yahoo! and MSN.

Second, Overture's recent acquisitions of AltaVista and FAST's consumer search business show that it is, or was, trying to build its own vertically integrated operation. But it could never have built a portal as big as Yahoo! or MSN.

Rumour has it earlier this year that Yahoo! mulled over the purchase of Espotting (in a recent meeting with The Register a senior officer of the UK search company said reports were "bullshit"). Today's announcement shows that Yahoo! had much bigger fish to fry.

Yahoo! will now have two search engine platforms - last year it bought Inktomi. And it will also have a couple of new, almost certainly redundant, portals in the shape of AltaVista and AlltheWeb. ®

Related stories

Consumers don't trust paid-for search
FindWhat.com buys Espotting for $163m
Ask Jeeves flogs enterprise search biz
Ask Jeeves: Why did you junk Espotting for Google?
Overture buys FAST's web search biz
AltaVista flogged to Overture
Yahoo! buys! Inktomi!
Inktomi back to square one after Verity search sale

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.