In a previous “Tech Throwdown” segment by this reporter (http://www.joesesso.com/?p=738), Yahoo filed suit against Facebook for patent infringement just weeks before the social networking giant’s IPO launched in May. Facebook quickly responded with its own lawsuit against Yahoo. It was looking ugly, especially after Facebook’s dismal IPO performance, but a surprise announcement from the two companies last week apparently put their differences aside. The big question from most investors and advertisers is, “what does this all mean moving forward?”
Yahoo and Facebook released a joint statement last week saying that they have settled their differences and have dropped their respective lawsuits against each other. No money was exchanged from either company, and the two tech giants agreed to work together on future projects. The agreement was personally worked out by Facebook’s COO Sheryl Sandberg, and Yahoo’s interim CEO Ross Levinsohn. What does this mean for each company?
Mark Zuckerberg is all smiles after settling with Yahoo
For Yahoo, this means having Facebook as a partner. For a company that’s struggling as bad as Yahoo, this is a huge morale boost. The company has been in a tailspin since last year when they fired Carol Bartz, then got rid of Founder Jerry Yang, and hired and fired Scott Thompson within three months. Ross Levinsohn has pined to become the full-time CEO, and this deal will probably help him get it, since he personally put it together on Yahoo’s behalf.
For Facebook, it now has two of the three largest internet search engines in its corner. I’m not sure how Microsoft feels about this, since they are an investor in Facebook, and Bing (Yahoo’s competitor) is Facebook’s partner on the social network’s platform. Whatever the case, it’s clear to many that this bond is another feather in Facebook’s cap in its battle with Google for web supremecy. Facebook and Google are entrenched in the web battle of a lifetime for information, and both don’t want to give any ground. Who’s going to win? It’s too early to tell, but the next year or so is going to be very interesting for search engines and social networks. Stay tuned…
Related posts:
- Tech Throwdown: Yahoo Vs Facebook (with Amazon Looming)
- The Facebook – Instagram Merger and What it Means to You (and your business)
- Yahoo In a Tailspin – It’s Getting Out of Control (and that means trouble for Yahoo Real Estate)
- Yahoo on the Brink: The Drill Down & How This May Affect Real Estate Search
- “We’ve Made A Bunch of Mistakes.” Facebook, Zuckerberg, and the $100 Billion Question
