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Technorati: Yahoo or Microsoft?


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January 14, 2006

Technorati: Yahoo or Microsoft?

Stephen Baker

Speculation is percolating that Yahoo will snap up Technorati. Michael Arrington points to Yahoo's purchases of Flickr and Del.icio.us.

But Flickr and Del.icio.us are not twins. They are tagging triplets along with Technorati, which created and popularized blog tagging in 2005. Today, the majority of blogs use tags and categories to label their posts.

A month ago, I speculated that Microsoft would buy Technorati. My thinking: With Yahoo moving ahead in the community and tagging worlds, Microsoft would hurry to land one of the triplets in an effort to catch up. Granted, this is not sophisticated M&A analysis. Arrington points to a print article in Red Herring that lists 37 signals that Technorati, as well as MeasureMap, Digg, YouTube, could be in the mix this year.

I'll stick with Microsoft, just to be show that I don't drift with the tide. One more note. A lot of people expected Technorati founder Dave Sifry to unload the company as it suffered scaling troubles last summer--just as Google was jumping into its market. I for one thought that Technorati's value and market leadership would ride a downward slope. Instead, Sifry and his team improved Technorati. It's a lot better than it was then, and I'd imagine, a whole lot more valuable. If he sees a way to continue this progress, perhaps he's not in such a hurry to sell.

Your guess?

10:36 AM

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Tracked on January 16, 2006 12:31 AM

$250M

Posted by: Ben Barren at January 15, 2006 09:05 PM

I don't know who is going to really buy them - or if they stay independent - but from the social side I would more expect Yahoo to buy them, it would make more sense.

While MS entered the blogging market with MSN Spaces, Yahoo still is much more connected on those topics I find important for myself in the sphere.

MS buying it would be just that: A buying of a company, not a merger of like minded enterprises.

Posted by: Nicole Simon at January 16, 2006 08:42 AM

But there's one key reason Technorati's not really part of the family: no dependents. Flickr and del.icio.us have accounts which users build over time, so because of the high switching costs, users are highly loyal.

Nothing's saying that a competing service can't read and index Technorati tags as well.

Posted by: Jon Garfunkel at January 17, 2006 08:54 PM

Microsoft Corporation is soon buying Meebo

Posted by: Steve at August 31, 2006 08:22 AM


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