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Does Yahoo! CEO Terry Semel Actually Think The Search Game Is Over?

I have never had anything against Yahoo! In fact, I find Yahoo! to have more relevant search results then others (including Google) quite often. That being said, I find this statement attributed to Yahoo! CEO Terry Semel to be asinine at best and frightening at worst:

"My impartial advice to Microsoft is that you have no chance," Semel said. "The search business has been formed." - Read the rest of the article (via Good Morning Silicon Valley)

Perhaps there is a contextual discrepancy, because if not, this statement is truly absurd. Semel does go on to say that other forms will take place but that itself implies the search business is not done. Perhaps he should read The Search. Everything boils down to getting information and we are clearly no where near where we need to be for anyone to believe there is not room for complete change or realignment. Perhaps he should also take a look at this April 2006 search usage chart.

For Yahoo! shareholders, this should be frightening. One, I am not sure I would bait Microsoft with such a call out. Two, it does not seem to bode well for Yahoo! to be pushing ahead. If everything is set and the game is over, why bother innovate? Why bother bring forward new products or innovations? Perhaps this is the thought that has led Yahoo! to wait 8 years before providing a major upgrade to its ad program, all while Google chomped up and passed it. Third, does that mean he is happy to be second in search? Finally, I find this all the more perplexing because the developer APIs Yahoo! continues to release are quite forward thinking.

The search business is no where near over and anyone that thinks otherwise is either confused, delusional or attempting mind games.

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