While Wall Street is hyping Google's recent deal with News Corporation (NWS) as a big victory for Google (GOOG) and defeat for Yahoo (YHOO) and Microsoft (MSFT), there is something that they are missing in the long run.
First of all, Google is completely dependent upon its search business as it source of revenue. Both Yahoo and Microsoft have a number of different streams of income that add to their bottom line.
So while the deal that connects Google to MySpace is important in their space, it doesn't have as much impact upon Yahoo or Microsoft, as it would have had on Google. Google is vulnerable at this time, and the people running the company know it. That's why they are putting feelers out all over the place trying to add other streams of revenue. They have to win the search wars to even stay a business; Microsoft and Yahoo don't.
In our own businesses, we need to learn that it is dangerous to rely upon only one source of revenue. Yes we need to establish one at a time and get them performing great. When that is done, we need to look beyond to adding additional revenue producers.
Even if you're in the online advertising business, you need to seek out more than one way of offering ads. This is a way to diversify your risks and not be dependent upon the success or whims of one company alone. Even if you're extraordinarily successful in your business and have a large share of the market, doesn't mean that you aren't vulnerable.
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