From the San Francisco Chronicle:
Yahoo's biggest search affiliate, Korea's NHN, is taking search in house. (NHN runs Naver, Korea's biggest search engine.)I remember a time when major business deals between Korean companies and their American, Japanese, or European partners were a very big deal, and the idea of any but the very biggest of those Korean companies bringing hurt to major American players was, well, preposterous.
According to Doug Anmuth of Barclays, this will cost Yahoo an astounding 10% of gross revenue in 2011.
Fortunately for Yahoo's bottom line, the impact on Yahoo's net revenue (after paying a 95% revenue share to NHN), will be much smaller, perhaps 1%-2%.
But losing 1%-2% of revenue in a customer defection is not what Yahoo needed right now. It's also bad news for the Microsoft-Yahoo alliance, which will lose some advantages of scale.
In other high-tech joint venture news, Hynix has agreed to join up with HP to produce a new type of memory chip that is expected to be a hundred times faster at storing data. It's expected to be used in phones, MP3 players, and cameras.