vi'IC I
`
`l'lt:W::i
`
`June 26, 2000 2:25PM PDT
`
`Yahoo sheds lnktomi for new
`search technology
`
`By Jim.H u fmailto:letters@news.com?subject=FEEDBACK: Yahoo
`sheds Inktomi for new search technology]
`Sta:ffWriter, CNET News
`
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`
`Inktomi's stock price and its reputation as the leading Internet search
`provider took major hits today when Yahoo said it will switch to a rival
`search service, but the company's bottom line may not suffer the same fate.
`
`Inktomi's shares plunged as low as ~
`[http://www.cnetinvestor.com/quote-detail.asp?symbol=INKT] this
`morning when Yahoo said it will begin using start-up search provider Google for its
`primary search engine. By the close of regular trading, Inktomi was down $25.31, or 18
`percent [http://www .cnetinvestor .com/ charting/ chart-snap.asp?
`symbol=INKTl , to $115.06. Yahoo fell $6 to $119.31.
`
`EXHIBIT 2092
`Face book, Inc. et al.
`v.
`Software Rights Archive, LLC
`CASE IPR2013-00480
`
`

`

`Yahoo sheds Inktomi for new search technology - CNET News
`5/15/2014
`Analysts agreed that the announcement may have hurt Inktomi's pride, but they said
`the implications for its revenues and profitability are mild. While the company is well
`known for its search technology, that side of its business is a money loser that has
`increasingly played second fiddle to its exploding networking services division. The
`search market in general, meanwhile, remains a low-margin, commodity business even
`as it has been swarmed by hungry competitors like Google.
`
`Dick Pierce, Inktomi's chief operating officer, said Yahoo represents less than 2
`percent of Inktomi's overall revenues. Losing the portal as a search licensing partner,
`he said, will have "little impact with respect to profitability."
`
`Inktomi develops Web search technology that companies can license for their sites,
`with clients including America Online, Excite@Home, RealNetworks, Microsoft
`Network and NBC Internet (NBCi). The company divides its revenues and operating
`results primarily into two buckets. Portal services such as search account for 40
`percent of its revenues. Networking services, which help make content delivery over
`the Internet more efficient, make up 60 percent of revenues.
`
`In the last quarter, the company posted its first profits of a penny a share, largely on
`the strength of its networking services, which posted operating income of about $2.8
`million. Portal services, by contrast, posted an operating loss of about $5.6 million,
`according to a Securities and Exchange Commission filing.
`
`Yahoo's announcement underscores the shifting competitive landscape among search
`providers and marks a significant coup for Google  [http://www.google.com]  .
`Since its founding in 1998, the Silicon Valley company has lured many early Web
`adopters to its service and has garnered attention from its competition. Just last
`month, Web search veteran AltaVista launched Raging  Search
`[http://www.raging.com]  , a slimmed-down search engine aiming to lure  back
`[http://www.cnet.com/news/0-­1005-­200-­1808590.html]  sophisticated
`Web users who have migrated to Google.
`
`"Yahoo selected Google because they share our strong consumer focus," Jeff Mallett,
`Yahoo's chief operating officer, said in a statement.
`
`The portal attracts one of the largest audiences on the Web, and searching remains one
`of the most popular functions on its site. Like Inktomi, Google will provide search
`results to queries that span beyond Yahoo's human-edited directory.
`
`Yahoo will begin using Google's technology within the next 30 days.
`
`To soften the blow of its decision, Yahoo said it will use Inktomi's search technology in
`its new Corporate Yahoo. Launched  [http://www.cnet.com/news/0-­1005-­
`200-­2151454.html]  today, Corporate Yahoo is the company's attempt to sell
`
`http://news.cnet.com/2100-1023-242392.html
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`Yahoo sheds Inktomi for new search technology - CNET News
`5/15/2014
`customized versions of its service to corporations for internal use.
`
`Inktomi's Pierce said the company has an "opportunity" to recoup its search revenues
`with the Corporate Yahoo arrangement.
`
`Although the revenue shortfall will not significantly drag down Inktomi's earnings,
`losing a high-profile client such as Yahoo may hurt the company's image as the search
`technology of choice among Net heavyweights.
`
`"Clearly this is a blow to their prestige," said Peter Ausnit, an equity analyst at
`Prudential Securities.
`
`Despite Inktomi's lead in licensing search technology to Web sites, more players such
`as Google and Direct  Hit  [http://www.directhit.com]  have emerged in its
`rearview mirror. Many of these new competitors are offering more relevant search
`results and licensing their technologies to major sites.
`
`Google is backed by some of Silicon Valley's most influential venture capitalists,
`including Sequoia Capital and Kleiner Perkins Caufield & Byers. Founded by Stanford
`University graduates, its technology ranks results based on the popularity of a site; a
`site's popularity is measured by how many other sites link to it.
`
`  [http://tm.intervu.net/s3/cnetreal/06/0626google.ram]  
`
`[http://tm.intervu.net/template/smirror/ivtemplates/cnetwin/vodtac.asx?
`stream=s3/cnetwin/06/0626google.asf;;title=Danny
`Sullivan;;author=CNET  Radio;;copyright=1995-­2000  CNET  Inc,  All  rights
`reserved.=;;xtn=.asx]
`Danny  Sullivan
`Editor  of  SearchEngineWatch.com  
`  
`Yahoo's  selection  of  Google  is  probably  just  a  business  decision  that  gives  the  portal  a  better  deal.
`
`Sequoia Capital's Michael Moritz serves on the boards of both Yahoo and Google.
`Silicon Valley power broker John Doerr, of Kleiner Perkins, is also a Google board
`member.
`Despite Moritz's board role in both companies, Google CEO Larry Page said the link
`between the companies did not play a significant role in today's announcement.
`
`"It's good for both companies in terms of comfort to have a shared board member,"
`Page said. "But companies tend to do what they want to."
`
`Direct Hit has also taken market share from Inktomi. Last year, Lycos' HotBot search
`engine dropped its longtime relationship with Inktomi to make Direct Hit's
`
`http://news.cnet.com/2100-1023-242392.html
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`Yahoo sheds Inktomi for new search technology - CNET News
`5/15/2014
`technology its default. In January, Ask Jeeves, a search engine that lets people ask
`questions online, acquired  [http://www.cnet.com/news/0-­1005-­200-­
`1530855.html]  Direct Hit to provide a broader set of answers to customers.
`Web sites such as Yahoo primarily use search technologies as a backup for queries that
`go beyond their own directories. For many Yahoo users, the deal shuffling will barely
`be noticeable.
`
`"I think this will be (as) completely transparent to users as Inktomi's relationship
`(with Yahoo) had been," said Patrick Keane, an analyst at market research firm
`Jupiter  Communications  [http://www.jup.com/]  .
`
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