The management reshuffling at Yahoo! today is proof the internet pioneer’s media focus isn’t working – says CNBC’s Julia Boorstin. Boorstin was on “Power Lunch” today talking about the unrivaled dominance of Google. The search firm started at Stanford by Larry Page and Sergey Brin has taken on eBay, PayPal and MapQuest – and it’s winning. Not to mention – Google is set to overtake Yahoo! as the world’s most trafficked website.
Google has collected 73% of the global search market share this year. It’s also up 17% -- compared to Yahoo!’s drop of 31% – in 2006 and carries a market cap of $149 billion. That’s three times the market cap of Yahoo!.
Scott Kessler – an S&P analyst – says Google’s biggest enemy may be itself. The company likes risky, dot-com era type deals – which are sometimes fantastic successes – and sometimes not.