Posted February 4, 2008 10:31 am by with 4 comments

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As much as I’d love to tell you there’s more to life today than just the Microsoft bid for Yahoo, there really isn’t. I looked through 1000+ feed items and these are the ones that will bring you up to speed.

1. Microsoft’s General Counsel, Brad Smith, has responded to Google’s blog post suggesting MSFT/YHOO would create a monopoly.

The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The alternative scenarios only lead to less competition on the Internet.

Today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 percent of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65 percent search query share in the U.S. and more than 85 percent in Europe. Microsoft and Yahoo! on the other hand have roughly 30 percent combined in the U.S. and approximately 10 percent combined in Europe.

2. Microsoft’s CEO Steve Ballmer also expects Yahoo to agree to the bid very quickly.

"We trust the Yahoo board and the Yahoo shareholders will join with us quickly in deciding to move down an integrated path," Microsoft Chief Executive Steve Ballmer said in an annual strategy meeting with analysts.

3. Meanwhile, back at the batcave, Yahoo is looking at other options which include finding another suitor, splitting up the company, and even partnering with Google!

  • Google stocks going down.

  • jdmartindale

    Did anyone notice the disclaimer for the statement was 3.5 times as long as the statement itself? I just found that amusing.

    But about the subject at hand: Yahoo + Microsoft = One company that has no clue how to manage the internet, as opposed to two. I don’t see a real threat for Google here, I think they are just trying to piss Microsoft off, which most assuredly happened. So will Microsoft acquire Yahoo? Who knows. I think it would be interesting to see if Yahoo cleans up their page or if Microsoft just wants the ad revenue and lets Yahoo run itself.

  • I don’t think a Yahoo! – Google merger would benefit either company as much as a Yahoo! – MSN merger. Google and Yahoo! users expect different things when they get to the homepage of each search engine. Yahoo! users want news headlines, videos etc. and Google users aren’t expecting those things.

    A merger between Yahoo! and MSN would allow the two companies to improve on the few things their good at.

    Yahoo! would just hold Google back.

  • I don’t think the courts would view the potential merger as a monopoly. Not even Johnny Cockrain rolling is his grave could prosecute that.