Was Google-Yahoo Ad Pact Move By Google To Sabotage Yahoo?

Comments on the possible reason Google backed out of an acquisition of Ringside Networks this year started me thinking about a deeper evil motivation behind the Yahoo Google ad partnership and Google's back down from it earlier this month.

Could Google have made the effort to start the process just to stop Microsoft's acquisition of Yahoo? Did they jump out of the partnership, not to avoid the possibility of a legal battle, but because they had achieved what they wanted?

Let's go back to the Ringside scenario. "There are two dominant Social API's - the Facebook API and the OpenSocial API. The Ringside Social Application Server implements both API's so that a website or application can run their social application anywhere on the web. Additionally, the Ringside Server provides a way for websites to build their own friend networks that also integrate into the large Social Networks like MySpace, Orkut, hi5 and other OpenSocial-based Social Networks," as their website explains.

Google was interested in this application as it would have enabled them to compete with MySpace and Facebook. But they were fast also developing their own.

When Google approached Ringside they were about to get second round VC capital, which they turned down as they possibly were about to be acquired by Google. When Google stepped away from the offer the company ended up folding, unable to get funding they had turned down. Subsequently the company folded.

Interesting story in and of itself. Now let's think of this in terms of Yahoo.

Earlier this year, Microsoft made an earnest bid to acquire Yahoo and given Yahoo's financial situation they may have been forced to sell if they had not started the ad partnership with Google. Everyone watched the move and many started the cries of monopoly, but was this Google's distraction - the part of a masterful preconceived move to cripple Yahoo and deny Microsoft the chance to jump up to a real contender in the space?

I know it all sounds like a conspiracy theory but one that has some merit. Microsoft has pretty much given up on Yahoo and to a large extent the push to challenge Google in the search arena.

Jerry was made to look inept and will step down as Yahoo CEO. But, they did offer to fight the Sherman Act challenge - one I think could have been won. The partnership was not restricting advertisers access to Yahoo and the price at both are bid based so raising them would have been up to the actual advertisers not the company.

As Ringside CEO Bob Bickel details in his blog:

We were ready for our Series A round of funding, and in late May we received a number of term sheet offers from the very best VC firms. As we were about to finalize our funding, one of the biggest non-evil Internet companies asked if we would have interest in being acquired instead. After a lot of thought and debate, we decided that the larger company would enable us to get our technology to market sooner and with more impact.

The story sounds almost too good to be true. And it was. After dragging out the process for most of the summer, the non-evil company decided that they really did not want to acquire the company after all. Recommendation: always beware of wolves dressed as Grandma, they may be more like Microsoft than they admit.

Maybe he should have said the "no evil company" dislikes Microsoft more than they admit. We know Larry and Sergey are smart - but are they "evil geniuses"?

Well Looks Like SEOktoberfest For Me

How could anyone possibly pass up the chance to wear lederhosen and drink with some of the great SEMs at the Oktoberfest in Munich? And with Marcus aka Mediaadonis as one of the organizers I know there will be a lot of fun.

The cast of attendees is a who's who of our industry and I look forward to getting them drunk and learning their secrets... well that will remain to be seen.

Also me looking like this could ruin my career... well maybe not!

SEMPO Guide To Rome: Massimo Burgio

My recent travels had me in Rome for a few days with my kids and beyond the tourist stuff I did - funny being one of those guys I see in NYC riding the tourist buses but I now know they really are handy for visitors.

Wanting to see some of the real Rome I had contacted that ever popular Italian online marketer Massimo. He gladly offered to show us some local color. We met him in Travestere at the fountain at the piazza St. Marie - hope I got that close Massimo.

Now my kids are 16 and 13 and have traveled a bit and both were studying Italian, so this was a bonus 4 days on the way to Australia. My daughter loved the ancient ruins and churches, my 13 y-o son was mostly bored - no fights anymore at the Colosseum may have been a reason. So the side trip to an authentic neighborhood with a local would make for an interesting distraction.

I could not have asked for a better evening. We set out near his office and everywhere we stopped people knew and loved him. He gave the city the best spin and had my kids entertained with his stories. The daughter had some wine and water - as many Italians her age do at meals and we talked about the world that lay ahead for them.

After stops for aperitif and appetizers and then a great long dinner we walked a while and got them back to the hotel to get some sleep. Massimo and I had other plans.

He showed me his local - and by the greetings of so many old friends who see him about as much as those of us who do the search conference circuit - he is a loved character that everyone wanted to hear about his latest exploits. So we spent a couple of hours where he would not let me pay for a drink (after he bought dinner), introduced me to stunning and friendly models and all sorts of creative Romans.

Then the late night tour of the city began. On to his motorcyle, we went whipping through the mostly abandoned cobblestone streets and saw a side of Rome few tourists would be able to find on maps.

His love of the city showed and he knew all the cool places to see the city. Three spots with interior views of the Colosseum - little cul de sacs where the locals hung out. He even showed me an amazing sight at the Maltese Embassy (hope I got the right country Massimo) - but in this out of the way place with huge walls you walk up to a particular set of doors and there is a large peephole about the size of a silver dollar. You look in to the building and even though it was after midnight and dark, you had a view of Vatican - apparently the building is headquarters of the Knights of Malta - hidden away in Aventine hills where the richest houses in Rome are.

The midnight ride was a blast - cutting through restricted areas at the speed of sound - okay maybe a little slower but not much - hitting sharp turns and coming out on some great views of this fabulous city.

Massimo I had a blast and I will forever associate Rome with that great evening. See you at the next conference or maybe Burning Man. My kids will be talking about the conversations for quite a while.

My 12 Year Old Could Teach Yahoo and Microsoft About Fair Play

I am in Cooperstown this week watching my 12 year-old son play in the Hall of Fame Baseball Tournament. His team is 7-0 and on their way later today to play in the championship game - go Green Dogs.

I have been more proud of his sportsmanship and sense of fair play, than I am of his athletic accomplishments. Maybe the executives over at Microsoft and Yahoo could hire him to instill a sense of maturity.

As a stockholder I have lost confidence in Jerry's kids, but the actions of Microsoft and Carl Icahn have not thrilled me either. This is big business and most investors expect a level of professionalism from the companies we invest in and from the people who control them.

One of the teams in my son's tournament have displayed unsportsmanlike conduct and not just the kids but the coaches and parents. What chance do the children have if they see the adults behaving that way. My son's team has been upbeat, supportive of one another and are enjoying their days in the sun. When an opposing player got injured and taken away in an ambulance they were concerned and made sure to find out how he was doing at the end of the day.

Regardless of how the Yahoo/Microsoft deal plays out, I think both parties have lost perspective. What type of example are you showing your employees and investors?

Obviously this isn't the kids playing field - but maybe it should be!

Google Really Is The Borg

The idea that Google will soon be in a position to substantially control what happens on the internet is not a fantasy. Given their collection of data, the advertisers and product sellers, the publishers and readers, are all ultimately under the influence of Google opinion.

Given their search reach, what they determine to be worth reading is soon the common view. People use the references to link to and lift those sites in the other search engines' results. While they may show differences the top 100 across most engines have a deep similarity.

We face the possibility that Google is Big Brother and in Orwellian fashion Google determines what is news speak.

The recent launch of the Google Affiliate Network possibly shows a little too much of that manipulation.

They tell Publishers:



Google Affiliate Network can help you discover new advertiser referral programs and generate more revenue.

Easy to use

Save time with an intuitive user interface, fast-loading pages, and creative trafficking tools.

Tracking and reporting

Track conversions and member IDs for loyalty marketing. Schedule and save reports.
Automated payments

Receive electronic payments, consolidated across advertisers, twice a month. Choose from a variety of commission structures.
Support and development

Contact our experts for technical support or to help you find new revenue opportunities.

Publisher recognition

Earn AffiliateVIP status and enjoy exclusive marketing opportunities and greater visibility in the network.

Hold out that carrot and people will jump through hoops - remember when they were selling Gmail accounts on EBay.

And to Advertisers they promise filtering and success:

With Google Affiliate Network, you can manage a custom affiliate marketing program and attract publishers to grow your affiliate channel.

Affiliate marketing expertise

Consult with our affiliate marketing specialists on planning and distribution, account optimization, and technical issues.

Network depth and breadth

Choose from a wide variety of high-quality publishers based on detailed profiles and metrics.

Tracking and reporting

Track conversions, evaluate performance, and optimize your program with actionable data.

Network quality

Work only with qualified publishers who are continually screened, reviewed, and advised by our quality team.

Performance-based pricing

Rest assured that cost-per-action pricing means our interests are aligned with yours.


Will they lower AdSense income to push the affiliate advertising? Well they are supposed to be optimizing both sides.... but basically you put your companies in their hands. Fair exchange is no robbery - or this should be a win-win situation are cliches I expect to hear. But remember these are the guys who thought the Adwords minimum bids were a benefit to everyone - funny I seem to have helped finance all the work because I never saw a low CPC during that period.

Google seems ready to constantly be battling the government. Hey their lawyers are well trained by now.

To quote another Orwellian work: "All animals are created equal, but some are more equal than others" and I guess Google gets to make that determination.

Just a heads up.

If You Give A Mozz A Sandwich

I am hoping people are familiar with that classic "If You Give A Mouse A Cookie" - if not it is a children's classic.

The recent post over at SEOMoz about XSS security was informative - well worth the sandwiches sent as payment by Search Engine Watch for the heads up.



So the story goes...

If you give a Mozz a sandwich he (or she) will probably want champagne to go with it.

Then after a bottle or two or three - they will most probably need to go to the bathroom.

When they get to the bathroom, they will probably notice that their eyes are bloodshot and want some Visine.

While they are waiting for you to get them the Visine, they will probably come up with some funny ideas for linkbait.

"Search Marketers With The Most Bloodshot Eyes At Conferences" will be created and deployed as another excellent blog entry.

People will get annoyed at their inebriation being plastered on the web, and a huge discourse will ensue on the Mozz blog. Sides will be drawn, links to the action will occur, but that just means more comments.

So when the traffic dies down and all the social networking is done they will be hungry and want more sandwiches.

Now if you happen to be used as the next reference - whatever you do - Do Not Give The Mozz A sandwich.... because......


Hope you guys liked the sandwiches Matt McGowan sent you last week. And Rebecca, Rand, Scott and Jane (figuring the order of who gets mad first)... I was joking and could not pass up the story... and I did not title it "If You Give A Moz A Cocktail" - that will be the sequel!

Darren I know you did not share in the sandwiches, but will buy you a drink when I see you at next conference.

TechSet Coming To NYC

Watch out New York City the TechSet is crashing Internet Week. Stephanie Agresta just let me know that her band of mischief makers will be attending various events.

Don't say I didn't warn you.