Jerry Yang’s facing all sorts of problems, and his own words may be digging him a little deeper. According to what Microsoft’s general counsel told a Senate antitrust panel, Yang recently admitted that Yahoo’s deal with Google will more or less create a search monopoly.
If Brad Smith’s to be believed, then in a June meeting between Yahoo and Microsoft representatives, Yang said, “The search market today is basically a bipolar market. On one pole there’s Google, and on the other pole there are Yahoo and Microsoft both competing with Google. If we do this deal with Google, Yahoo will become part of Google’s pole, and Microsoft would not be strong enough in this market to remain a pole of its own.”
Jerry Yang
Of course, after all that’s transpired, it’s hard to believe anyone with ties to Microsoft, Yahoo, or Carl Icahn. Official statements have contradicted each other on a regular basis, and they can’t all be telling the truth. Also, regardless of what one man said, the reality of the situation will remain pretty much the same.
Sworn testimony in front of the Senate has to count for something, though, and it would at least be noteworthy if Yahoo’s CEO acknowledged the search wars are ending.
As for how Yahoo responded to Smith’s allegation, Frank Davies reports that Yahoo’s general counsel, Michael Callahan, “was pressed to respond by Sen. Arlen Specter, R-Pa., a former prosecutor. At first Callahan said ‘it would not be appropriate to comment on Mr. Smith’s accuracy.’ Then he said he could not recall Yang’s comment.”
