October 10, 2005

Yahoo! chairman says Google sux

Typically, we over here at the Curve tend to stick to security news, but this article just screams out for someone to comment on it. In statements made by Yahoo chairman Terry Samuel, he "belittled Google's efforts to expand", and said that Google is "following in Yahoo!'s footsteps." Some pretty harsh words...

Now, maybe I've missed something, but doesn't Yahoo use Google for search results? Granted Mr. Samuel concedes that Google is better at searching (hence Yahoo's consumption of their results), but these comments sound very bitter to my ears. A quick glance at the ticker shows that Yahoo is currently valued at 34 dollars a share and Google is valued at 312 dollars a share. That seems like a pretty big difference; one could almost say that Google is "eating Yahoo's lunch". As far as performance goes, share price can be deceptive, but if you compare the Yahoo annual report with the Google annual report from 2004, you find that Google has a net income per share of $2.07, whereas Yahoo's EPS is $.67. No matter how you slice it, Yahoo's gettin' smoked.

So my question is this - are Mr. Samuel's comments just sour grapes? If there's more to it than simple jealousy, I think he could make a more convincing argument by spending more time on what Yahoo's doing right and less time on how Google's doing it wrong.

Posted by Ed at October 10, 2005 03:13 PM