Google continues to move faster than Yahoo, giving analysts and employees reason to wonder whether Yahoo can keep up, let alone catch up.
Google's acquisition of YouTube is the latest setback for Yahoo, which has been losing internet advertising market share, usually to Google, the New York Times writes. Yahoo has been seen as slow to react and difficult during negotiations, whereas Google has moved swiftly with a series of deals, gaining the ability to sell a full range of advertising. While Yahoo has been bogged down in negotiations to buy social-networking site Facebook, for example, Google has quickly secured a search partnership with MySpace and bought YouTube.
Google has also zoomed ahead of Yahoo in market value: Google is worth roughly $131 billion, almost four times Yahoo's worth. Moreover, Google is gaining a reputation for being bold and innovative, terms once used to describe Yahoo. As a result, analysts and employees are reportedly leaving Yahoo behind. Many analysts believe Yahoo needs to make some bold moves of its own.
"Yahoo has lost the favor it enjoyed a year or two ago," said David Cohen, SVP of Universal McCann, a media buying agency of the Interpublic Group. "There are more players in town, and the others are closing the gap relative to the things Yahoo is good at."