Yahoo's Lost Bid Doesn't Spell Doom

Although Google won the deal to handle search for News Corp., Yahoo's focus and prospects are different. Even so, it can't stand still

Conventional wisdom holds that wherever there's a winner, a loser can't be too far behind. So, Wall Street's knee-jerk reaction when Google won the bid to handle search for News Corporation's Fox Interactive Media (NWS) was to pronounce Yahoo! the clear loser in the deal. After all, Google (GOOG) is the No. 1 search engine and Yahoo (YHOO) is No. 2, and the agreement ties Google with MySpace, which surpassed Yahoo mail last month as the most visited destination on the Internet, according to market research firm Hitwise.

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