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Yahoo! to Dump Bing for Google?

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More changes could be headed to Yahoo!

According to Trip Chowdhry, the Managing Director of Equity Research at Global Equities Research, Yahoo! (NASDAQ: YHOO) could be looking to replace the ailing search engine partnership with a more lucrative deal.

"Yahoo!'s relationship with Bing has been a total disaster," Chowdhry told Benzinga. "The revenue for search has been lagging. Secondly, expectations of the revenue that they'd be bringing has not panned out. Contrary to what people think, we haven't seen Bing make any market dent against anyone. The numbers you are seeing that are showing increased market share is because Yahoo! has left the market almost, and that is where you are seeing some revenue. But if you ask me, has Bing put a single dent in Google? The answer is no."

"What we are hearing," Chowdhry added, "is probably Yahoo! may swap out Bing in favor of Google (NASDAQ: GOOG)."

As one of the larger tech giants to fall from grace, Yahoo! has been struggling to remain relevant in a world that's moving toward newer and more creative websites. Earlier today, Ironfire Capital founder and managing member Eric Jackson compared the company to another ailing beast -- AOL (NYSE: AOL).

"I think Yahoo! and AOL are very similar companies," Jackson told Benzinga. "Everybody hated AOL up till last Friday. You couldn't find anybody to say anything positive about [that company]."

Yahoo! could find itself in a similar position. "Last November, AOL showed [that] their earnings declines [had] stopped," said Jackson. "It didn't actually go up significantly, but it basically leveled off. Suddenly there was this huge bump in the stock. I think it went from $12 to $15 or $16 in a matter of a couple of days. I think the same thing could happen with the core business at Yahoo!"

Follow me @LouisBedigian

Posted-In: Bing Eric Jackson Global Equities ResearchAnalyst Color News Rumors Analyst Ratings Tech

 

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