Google Versus Microsoft Showdown Draws Ever Nearer
Google comfortably holds the top search engine spot according to March, 2007 figures from web traffic analysis firm Hitwise, garnering over 64 percent of search engine visitors. The chart below shows that even with a Microsoft purchase of Yahoo, their combined share would total less than 30 percent of search engine visits, still less than half of Google's powerful position. An unnamed Post article source is quoted as stating, "The minute you hear Microsoft start arguing against something on antitrust grounds, you know they are desperate and need to do something big." While Microsoft may not be entirely desperate, they are significantly behind Google in the world of on-line search, as the following chart illustrates.
Biggest Microsoft Purchase Ever
A Microsoft purchase of Yahoo would be one of the largest and potentially most important in the web's history, as Yahoo is valued at more than $38 billion. Microsoft may have to spend closer to $50 billion in order to purchase Yahoo, according to Wall Street sources cited in the Post article. This would also represent Microsoft's largest ever acquisition. In areas such as on-line news, the combined company could significantly increase it's presence, as shown in the chart below. March 2007 figures from Hitwise show that Yahoo! News received 6.56 percent of the on-line news and media traffic, and that MSNBC received 3.88%, compared to Google News which received 1.83%. Were Yahoo! News and MSNBC to merge their traffic, they would combine to hold 10.44% in the on-line news market.
Can Microsoft Ever Catch Google?
Google has been seen to have had the upper hand in their timely and aggressive acquisition of companies such as YouTube and most recently DoubleClick, while Microsoft is seen by many to be playing mostly a game of catch up with it's purchases. A Microsoft purchase or merger with Yahoo would represent the biggest step they have yet taken in order to reign in Google. Meanwhile, Yahoo has been making acquisitions in order to strengthen it's position, such as Monday's deal to buy Right Media for $680 million. The Wall Street Journal reports that Yahoo might not be so eager to merge with Microsoft, and that there is a danger of top Yahoo staff leaving should an acquisition take place.
The Internet search world is following the Microsoft and Yahoo merger talk closely at industry web sites such as SEO Roundtable and WebmasterWorld. As the number of major players in the search engine world are winnowed down, each move becomes all the more influential. A merger or other agreement between Microsoft and Yahoo would likely have implications in all areas of on-line search.
Additional Resources about MSN Yahoo? Microsoft May Purchase Yahoo:
10:12 am on May 4, 2007 (utc 0)
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