Strong Ties Link Yahoo! And Google
Could Yahoo! and Google be on the path to a merger? Well, no. However, according to one model by a research firm Yahoo! should at least consider outsourcing to Google. The Bernstein Research report on the break-up of Yahoo! was released today. The model for this research assumed that the company was broken up into three parts ( see article from 24/7 Wall St.). The three new parts would be Display Advertising, Search Unit, and Subscriptions. Bernstein Research suggests that Yahoo! should outsource its search business to Google, predicting that Yahoo! could cut 25% of its staff and drop operating expenses by 17% that would result in a 28% rise in revenue in 2008. We created an IntellectSpace Knowledge Map to determine if it were possible for Yahoo! to enter into an agreement with one of its biggest rivals and found that both companies share strong ties through Intel Corp, Cisco Systems Inc, and Stanford University.
Yahoo! President Susan Decker and Google Director Paul Otellini both share a directorship at Intel, where Otellini has been President/CEO since 2005.
Yahoo! Co-Founder Jerry Yang and Google Director John Hennessy currently serve as Directors at Cisco. Yahoo! Director Edward Kozel was also a Director at Cisco until 2002 and spent eleven years with the company, also serving as a Senior Vice-President and Chief Technology Officer. Kozel most likely still retains contacts at Cisco.
Yang and Hennessy can also be connected through Stanford University. Hennessy is currently President of Stanford, where he works alongside Yang who serves as a Member of the Board of Trustees. Hennessy was also Dean of the School of Engineering and Chair of the Department of Computer Science at Stanford from 1994-2000, where Yang graduated with his BS and MS in electrical engineering.
With these strong ties if the recommendations from Bernstein Research were carried out, the possibility of Yahoo! coming to an outsourcing agreement with Google might be easier than people think.
Click here for an interactive version of this IntellectSpace Knowledge Map (Internet Explorer browsers only): http://nv.intellectspace.com
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