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`January 14, 2004 6:45 PM PST
`
`Yahoo, Google primed for
`search war
`
`By Evan Hansen [mailto:letters@news.com?subject=FEEDBACK:
`Yahoo, Go ogle primed for search war] and Jim Hu
`[mailto:letters@news.com?subject=FEEDBACK: Yahoo, Google
`primed for search war]
`Staff Writers, CNET News
`
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`EXHIBIT 2094
`Face book, Inc. et al.
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`CASE IPR2013-00479
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`

`

`Yahoo, Google primed for search war - CNET News
`5/15/2014
`first  quarter  of  2004  in  favor  of  its  own  technology,  opening  a  new  phase  in
`the  battle  for  Web  search  dominance.
`The announcement from Yahoo CEO Terry Semel marks the first time the company
`has publicly disclosed a specific timeline for replacing Google, a move that has been
`widely expected since Yahoo announced plans to acquire search provider Inktomi for
`$235 million in December 2002. Inktomi has developed so-called algorithmic search
`technology similar to Google's that indexes Web pages and ranks them based on
`search terms.
`
`"We've been hard at work with the assets that we've acquired to develop our (own)
`algorithmic search engine," Yahoo Chief Financial Officer Susan Decker said in a phone
`interview. "We'll be swapping that out in Q1."
`
`Although expected, the announcement highlights the changing market for Web-based
`search, which has been transformed in the past two years thanks to fast-growing and
`profitable advertising programs.
`
`Riding that crest, Google is preparing for a public offering that could raise as much as
`$4 billion, according to reports, giving the company a market capitalization of about
`$15 billion.
`
`Google currently processes approximately 80 percent of all search requests on the
`Web through distribution deals with Yahoo, Time Warner's America Online and Ask
`Jeeves, according to market share data compiled by research firm Comscore Media
`Metrix. When Yahoo ends its deal with Google, that share is expected to drop to about
`54 percent. Yahoo's reach, meanwhile, could jump to 42 percent, based on its own
`search traffic and a deal that provides Inktomi results to Microsoft's MSN Web portal.
`
`Analysts said the shift means that, overnight, Web search will change from a near
`monopoly situation to a two-horse race.
`
`"Competition-wise, this sets Yahoo up to take Google on," said Search Engine Watch
`Editor Danny Sullivan. "The minute Yahoo bought Inktomi, the idea they were
`partners and friends fell by the wayside. But Yahoo has not given consumers a strong
`reason to think of Yahoo as different from Google. They need Inktomi out there to get
`their own voice and differentiate themselves."
`
`The change will likely have only a small impact on Google's and Yahoo's businesses, at
`least in the short term, Sullivan said. Google earned just $7.1 million in fees from
`Yahoo in 2001 for providing its algorithmic search results, he said.
`
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`Yahoo, Google primed for search war - CNET News
`5/15/2014
`The real money in search comes from advertising revenues. Keyword searches made
`up 31 percent of the $1.66 billion in U.S. online ad sales for the second quarter of
`2003, according to the Interactive Advertising Bureau (IAB), an industry trade group.
`Since November 2001, Yahoo has run advertising search  links  on  its  site  from
`Overture  Services  [http://www.cnet.com/Yahoo-­plays-­Overtures-­
`paid-­search-­listings/2100-­1023_3-­275821.html]  --which it acquired  last
`year  for  $1.6  billion  [http://www.cnet.com/Yahoo-­to-­buy-­Overture-­
`for-­1.63-­billion/2100-­1030_3-­1025394.html]  --meaning Google won't see
`any loss in its advertising reach when the deal unravels.
`
`"This will mean virtually nothing to Google" from a business perspective, Sullivan
`said. "I don't know how much money they were making, but I'd be surprised if it was in
`the tens of millions. The real money in search is in ads, but Yahoo never carried
`Google's ads...What you really want to understand is the reach of their ad networks.
`That's not changing."
`
`Sullivan said things will get even more interesting when Microsoft gets its Web search
`act together, something he said he expects by the end of the year.
`
`Semel on Wednesday said that Yahoo has expanded its deal to offer Overture's paid
`search results to MSN's sites throughout Europe and Asia, adding to an existing
`deal  [http://www.cnet.com/MSN-­sticks-­with-­Overture/2100-­1024_3-­
`5092953.html]  throughout the United States and the United Kingdom.
`But the boost from the MSN deal could be short-lived, Sullivan said.
`
`"By the end of 2004, MSN will get their act together," he said. "Then the worry for
`Yahoo is that MSN will prove to be a temporary boost for them."
`
`[]
`
`[]
`@CBS Interactive. All rights reserved.
`CNET
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