Wednesday, February 24, 2010

Yahoo Twitter Trojan Horse

Yahoo (YHOO) entered into a deal with Twitter. Twitter does a lot of what the old message boards used to do for Yahoo. Except Yahoo has revenues and we are not sure how Twitter will be compensated. I assume they will be compensated. Probably there will be a revenue sharing agreement.

The more effective Twitter will be the better the revenue. But as in any apprenticeship relationship (surely you jest) the supposed junior will want to strike out on its own. So how does Yahoo control this revenue stream and not wake up one morning to read a twitter 140 saying it’s over.

Twitter just wheeled in the proverbial Trojan horse.