While Yahoo! and Google have been known competitors for several years, Yahoo! CEO Carol Bartz has made a fairly startling comment recently.
During a recent presentation held in New York, she has stated that she considers Facebook to be an even bigger competitor of Yahoo! than Google.
During the presentation she said, “Our greatest competitor probably is Facebook, more so than Google. They’re a hot site, but there’s room for more than one of anything.”
So far there has been no comment on the subject from Google or Facebook.
Bartz had been brought in as CEO of Yahoo! to help salvage the company, which had been going through a particularly bad phase. Since then she has made several changes and undertaken cost cutting measures such as cutting out of non-performing products, to help cut costs.
Yahoo! has also recently started a search deal with Microsoft which allows Microsoft to handle the search results, while Yahoo! focuses on advertising, thus bringing in more revenue.
She has also laid stress on sectors like news and sports which always attract a lot of users. She has also focused on acquiring companies which can bring along users, content and engineering technology to help Yahoo! compete with popular social networks like Facebook and Twitter.
In fact Bartz has also said that Yahoo! had considered buying over Facebook for a sum of $1 billion. While no such take over took place, the tables seem to have turned now.
While Yahoo! currently has a market capitalization of $22.1 billion, Facebook, which now has over 500 million users, is valued at $40 billion according to SharePost Inc. a private share-trading company. Bartz has said that as of now, Yahoo! has no plans of going private.