Since my return to NZ, I have been asked by several people to comment on the Microsoft / Yahoo deal that was signed off whilst I was away.
I have checked back on this blog and the last post which signalled the deal was posted five days before it actually happened. The only surprise is that it took so long to close.
The deal itself is an interesting one since it does not involve an actual M & A. It is built instead on a commercial deal that enables Yahoo to continue to develop its online real estate whilst providing Bing (sorry, Microsoft) with access to Yahoo's advertising sales teams.
It gives the 'Search' capacity of Microsoft a more significant market share. Google is still out there, but the gap has closed and the market is now ready for real innovation to be able to differentiate between the two.
The Search battle ground therefore is now nicely set. And the timing is sweet.
Pingar's time has come. And all will be revealed on 19th October.
On the 'Strip'.
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1 comment:
Interesting write up. Let me pose this question to you... Some food for thought :)
Is it really fair to compare Yahoo and Google? Is it not fair to say that Google is heavier into the "search" business and Yahoo is heavier into the "Media" business and "search" just happens to be one of their smaller verticals?
Google has found a smarter way to monetize on searching and ads presented to the user but Yahoo has more relevant results displayed to the user.
But at the end of the day, companies are in the game to make money so in that respect, just by comparing the two profit statements... Google is winning the battle.
My two cents.
Sharad
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