Microsoft To Acquire Yahoo!?

that has offered to buy for $44.6 billion.

If Yahoo! accepts the offer, the deal is not merely significant, it’s a blockbuster.

Google has been far and away the dominant search engine since, what, 1999? That market share dominance has translated into enormous search engine advertising riches that has allowed the company to expand into many different areas.

Google , with Yahoo! a distant second at 12% and Microsoft’s two properties, and , at a combined 6%.  That would give the combined companies a modest 18% share, but that’s enough to worry about how your search engine rankings will fare post-merger.

More significant, though, is the ability to leverage combined assets. If the new entity consolidates their search functions into one search engine, they can cross promote that engine among all their other properties: and , & , and and and and within Microsoft’s software itself.

Only fools count Microsoft out because this is how they do. If they can’t compete on their own terms, they buy their way in. Just ask .

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About David Erickson

David Erickson is principal of e-Strategy Media, a digital marketing consultancy based in Minnesota. David has extensive experience in digital marketing and is often used as an expert source by media and asked to speak on the topic before organizations and to sit on panel discussions.