Yahoo Could Pose A Problem For Facebook If It Tries To Enforce Its 1,000+ Patents

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Photo: Illustration: Ellis Hamburger

Yahoo has 1,100 patents in social, search, and display advertising.Facebook, which is about to file for an IPO, could be violating a whole bunch of them, Eric Jackson writes for The Street.

An undervalued part of the company, Yahoo’s patents have forced deals from Google and Microsoft in the past — deals that many think Yahoo underleveraged.

Even though Facebook shareholders Mark Pincus and Reid Hoffman own a lot of so-called “social” patents, Jackson argues that it is probably worth it for Facebook to make a pre-IPO agreement with Yahoo if the company comes knocking. 

Another reason Facebook should do a patent deal with Yahoo is that Facebook may some day decide it needs to get into search, where Yahoo owns even more patents.

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