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Yahoo chief: Google has a problem

Bartz - with Ballmer
Bartz - with Ballmer

Yahoo's chief executive Carol Bartz has said that Google need to diversify quickly if it isn't to face major problems in the future.

Bartz has been tasked with turning round the fortunes of Yahoo – which has fallen from grace in recent years despite once dominating internet search.

Now, with a high-profile search deal with Microsoft under her belt, Bartz has told the BBC that search colossus Google could have a problem unless it can broaden its business model quickly.

"Google is going to have a problem because Google is only known for search," said Bartz.

Got 99.9 problems, but the search ain't one

"It is only half our business; it's 99.9% of their business. They've got to find other things to do.

"Google has to grow a company the size of Yahoo every year to be interesting."

Google, of course, will point to the strides they have taken with things like Android, Gmail, Google docs and YouTube – all businesses that have the potential to bring revenue into the company even if it isn't happening now.

Bartz's comments may com across as sour grapes – considering Yahoo's waning influence – but Google will be well aware that diversification is crucial to its future.