Why Yahoo shouldn’t sell search

April 22, 2009, 5:06 PM UTC

During Yahoo CEO Carol Bartz’s conference call Tuesday to discuss the company’s quarterly results, there was much to discuss: Sales fell 13% and profits sank 78% as advertisers cut back on online spending. And the company confirmed reports of layoffs, saying it would shed about 675 jobs. Yet analysts seemed to care about only one thing: Yahoo’s search business.

The worst-kept secret in the tech world is that Yahoo (YHOO, Fortune 500) and Microsoft have been talking again about a potential deal. So everyone wanted to know if Bartz would sell search. But that was the wrong question. A better one: Why would she?

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