Yahoo boss Carol Bartz open to partnership with social networks

YAHOO can’t make the next Facebook but it might want to partner with it, according to chief executive Carol Bartz.

The web company’s boss said social network sites are a key area of interest for the internet media company, even as it tries to figure out how to boost its search business.

Speaking at the Morgan Stanley Technology Conference in San Francisco, Ms Bartz suggested Yahoo might seek to partner with social networking companies rather than build its own products in this area.

“I do not believe we can invent the next Facebook,” she said.

“It is very clear we have to do that,” she said in response to a question about her thoughts on the tremendous growth of social networks like privately held Facebook and Twitter.

Ms Bartz repeated her philosophy that every business in Yahoo is up for examination as the company seeks to revive growth and better compete with Google.

While she opened the door to negotiations with Microsoft about a search partnership, she stressed the importance of search data to Yahoo’s advertising customers.

“So, regardless of whether we manage it or somebody else manages it, that’s important,” Ms Bartz said, in some of her most significant comments about Yahoo’s strategy since she replaced co-founder Jerry Yang in January.

If Yahoo and Microsoft decided to talk about a search deal, “We’re going to negotiate as companies negotiate, privately,” she said.

The comments come a week after Ms Bartz unveiled a major management reorganisation. Investors are waiting to see if the new boss can restart deal talks with Microsoft.

Last year, Microsoft made an unsuccessful bid to acquire Yahoo for $US47.5 billion. The software company has said it is no longer interested in buying all of Yahoo but remains open to a search deal.

Ms Bartz flagged Yahoo’s web-based email product as well as its news and front-door businesses as “core” Yahoo properties. She also said the company needs to be “running very tight fiscally.”

She said the company could pursue acquisitions or partnerships to grow its footprint in Europe.