sj mercury news on the merger -

"Google also copied Yahoo, but added better technology. The Mountain
View company first focused on lucrative Internet search advertising, then
 offered popular mail and finance, as well as productivity applications and
 other features.

""They actually have more eyeballs than Google does," Creative Strategies
 analyst Tim Bajarin said of Yahoo. "People come to their site for online-
based content."

"But the money is in advertising, and that comes from sophisticated
 search-based technology.

""Yahoo stopped thinking of itself as a technology company," said Kevin
Lee, chairman and co-founder of, a search-engine marketing
firm. "You have to be a technology company to maintain leadership. They
didn't move quickly enough in certain areas to keep up with the quality
of searches that Google had."

"Engelhardt - whose background is rooted in investment banking, mergers
and acquisitions - said Yahoo's problems seemed to stem from the inability
 of the senior management to react and innovate quickly enough to keep
up with competition and technological challenges."