Yahoo! Chopping MyBlogLog?

MyBlogLog may be headed for the wood chopper, as sources told ReadWriteWeb Yahoo!, which acquired the cross-blog social-networking widget in January 2007, will shut down the service in January.

The service shows blog owners the faces and profile information of other MyBlogLog users who read their blogs, as well as offering access to activity streams from social networks that users associate with their accounts.

MyBlogLog co-founder Eric Marcoulier told ReadWriteWeb:

So much of your company’s long term success when it’s acquired is based on the amount of executive juice it has. The only way it survives and flourishes is if you have an executive champion who promotes it internally. Shortly after we were acquired, we were transferred away from our champion and under someone who didn’t feel the same way about MyBlogLog. In those circumstances, things simply slow down.

For any start-up that has earn-outs, and this didn’t affect us, you’ve got to keep in mind that in three months, you could be reorganized and the new guy could shut you down. The picture that gets painted early on when you have your product champions can change in a heartbeat, and it’s important for entrepreneurs to consider that when looking at the deal terms.