A Simple Explanation From Carl Icahn On Upside Of MicroHoo

Yahoo will be able to partner with Microsoft against Google, and allow [Yahoo] to focus more and spend more on its content business, which is a tremendous growth area [where] Yahoo has a leg up.

Over the years, Yahoo has proved it knows the content business, so i think at its core, Icahn’s take is a good one. But I still have concerns related Yahoo’s ability to innovate.

If your premise is that it can convert and cross-sell hordes of eager users (corps too) because of better products and services, you have to look at its recent track record. It only takes one hand to count the compelling services that it’s launched or bought over the last 3-5 years. I don’t use its home page or mobile services and I rarely depend on its media properties for content. The services I use are Flickr and Delicious. And neither can be described as true differentiators for Yahoo. Hmm, do I sound like a fence-sitter on the deal?

The flip side of course, is that outside of Google, the list of internet innovators is a short one. Somebody has to gain market share, right? That’s part of the reason I think Microhoo is much more of a prize fighter together than alone.