Yahoo! is getting torn up in the sphere this week, as Fred Wilson calls for a strategy of de-portalization (or whatever it should be called), and Richard Koman uses the *M* word (Media!) to describe the company.

The reports of Yahoo!’s demise are greatly exaggerated. The company’s model is not inherently flawed. And it’s not the like the company is in financial distress. Yahoo!’s just not executing quickly enough to match Google’s pace. Google has developed the most efficient advertising system on the planet, and Yahoo! is simply not able to catch up because it’s trying to ignite a system that it bought, not that it nurtured from birth.

This is not an identity crisis - this is operational underperformance. But cut Yahoo! some slack. It was not born a search company, and yet it’s making a decent run at it. The Overture acquisition was an brilliant strategic maneuver. We wouldn’t even be discussing Yahoo!’s future today if they didn’t identify and embrace the revolution of search. The problem is, you buy a big asset, all the smart people take off, and you’re ultimately left with a big boat that’s hard to move. The fact that Yahoo! hasn’t been able to unleash a meaningful response to AdSense is just so profoundly telling to me. There isn’t a debate as to whether Yahoo! should improve its ad matching. This isn’t a strategic dilemma. This is just disappointing execution.

Just to put things in context, though, I’d say Yahoo! has been far, far more nimble (and self-aware) than its counterparts at MSN and AOL.

And btw, GOOGLE IS A *MEDIA* COMPANY. AND A *PORTAL*. They will be buying up more audience like crazy. And why shouldn’t they? They can monetize us more efficiently than anyone.