Yahoo To Buy Inktomi

from the sorry-Google dept

In a slightly surprising move, Yahoo has acquired Inktomi for not very much money. Inktomi, of course, used to provide search services for Yahoo, but lost that contract to Google a few years ago. It would seem that this deal would put Google’s Yahoo relationship at risk as well. Of course, if Yahoo did ditch Google for Inktomi, it would be a mistake, since Inktomi’s search is much weaker than Google’s, and users might revolt. Now, the final purchase price is $235 million, but just three months ago, Inktomi was forced to purchase the building they are housed in (though, it’s mostly empty) for over $100 million – so I wonder how that gets sorted out in the deal. Inktomi, also has two (very nice looking) buildings down the street from me, that they built in the past two years that are completely unoccupied. I’m sure Yahoo will help them get out of that lease, as wel, but I wonder how much of the purchase price goes to that.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Yahoo To Buy Inktomi”

Subscribe: RSS Leave a comment
Jeff Chan (user link) says:

Two reasons

As I wrote on my weblog:

1) Google is expanding their array of services and is already encroaching on Yahoo’s territory with Google News and Froogle. It doesn’t make sense to outsource your search services to your competitor.

2) Search is extremely profitable, as Overture and Google have demonstrated. Yahoo wants to increase its share of the market before Google completely dominates the area.

Mike (profile) says:

Re: Two reasons

I agree with what you’re saying… however, the simple fact is that Inktomi’s search isn’t particularly good. Unless Yahoo can seriously improve Inktomi’s technology in a very short period of time they’ll be offering their users a vastly inferior service from what they’re used to. If anyone thinks that won’t turn people off from using Yahoo, they’re in for a bit of a surprise.

Mike (profile) says:

Re: Re: Re: Two reasons

mhh5 and I have had this argument going on for a long time…

Anyway, I still think Yahoo shouldn’t look at Google as a competitor, and they should have moved their business on to a different area already, but it seems they do look at Google as a competitor, which explains why they made this very silly purchase of Inktomi, which will be considered a huge failure.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...