Microsoft and Yahoo? 2 + 2 ≠ 4!
All this Microsoft and Yahoo stuff has got me thinking — how desperate are the CEOs of Microsoft to narrow the gap between them and Google?
At the current time Google have a 55% market share, up 20% in 2 years. Pretty good growth for any business. Microsoft and Yahoo (including all their subsidiary companies) only make up 45% and their market share is slipping year on year because of Google. Microsoft and Yahoo are desperate for more share in the market, and I can’t blame them.
But hang on. Even if the $44.6 billion Microhoo! deal does happen, do they really expect their market share to improve, profits to increase and Google to die as quickly as it rose in the sidelines?
The most likely thing that will happen is that competition will increase against Google, which will all but fuel Google to further improve their already superior search. Come on! If you’re two biggest competitors have to merge just catch up with you, you have to be doing something right!
For me, and other internet developers, the merger would be good news however you look at it. Better tools and APIs from Google, a comparable alternative to Google and maybe a Yahoo page written in ASP!Â
Steve Ballmer said:
“We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market,”
What he meant to say was:
“We are so desperate to kill Google that we’re willing to acquire Yahoo, once the only company to compete with us. To make sure they can’t say no we’re going to be throwing an inordinate amount of money at it, and hope that this whole Google business can just go away! *throws chair at reporter* ”
I believe that Microsoft were better than to think that “2 + 2 = 4″ on the web, and that just bolting different companies together will solve all their problems. It’s like shoving two cars together, and thinking it’ll go quicker, or putting two stupid people together and making a genius. It just doesn’t work!
