Aug 5, 2009

The Yahoo!/MSN Deal is rattling Google’s World


It was announced recently that Google will definitely have a competition in the field of search engine as Microsoft and Yahoo plans to join together. Thus the search market will be lessened from three main players to only two. Google gave a negative impression about this deal, saying it will hurt competition and the consumers.

This announcement simply stated that Microsoft successfully got the second place in the wars of the search engine between a deal wherein Yahoo! will shift in using the Bing search engine instead.

Different groups at Google are still in the process of studying the proposed partnership. Expected deal closure is around next year and is said to reduce innovation. The effects of the deal are the most talked about right now in the different corners of the industry today. It may even increase the online advertising competition in the market since a more feasible competitor to Google will be created.

It is expected that Google will really study this deal and will think of something to equally compete against the deal. In terms of search, Google is concerned. It is unfortunate that a major search player will lessen as it will deteriorate the competition.

To catch up with Google, both Microsoft and Yahoo are always thinking of different innovations in search methods which are good for the industry. With the positive conclusion of this deal, Microsoft will feel less pressured to innovate and just go ahead with the flow.

Right now, Google is the leader in the search race. They are controlling around 60% of the searches all over the world. The MSN/Yahoo tie-up will really work very hard to get closer to the achievements of Google, having just a base of around 25-30% of the whole searches.

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