Google’s Response to Microsoft – Yahoo Deal

It is impossible not to follow the proposed acquisition of Yahoo by Microsoft. Mergers and acquisitions of major companies on the Internet doesn’t happen everyday.

The official Google Blog posts a response from David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer at Google. " Microsoft's hostile bid for Yahoo ! raises troubling questions. Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC?" The legal council of Google also points out that "Microsoft plus Yahoo “equals an overwhelming share of instant messaging and web email accounts" and their monopoly will limit "the ability of consumers to freely access competitors' email, IM, and web-based services"

In response Brad Smith, General Counsel at Microsoft said that the acquisition of Yahoo by Microsoft " 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"

It is true that Goggle dominates the search market and Microsoft and Yahoo combined could not even reach half of what Google makes. According to the Marketing Pilgrim blog Google's market share for the past few years "has grown (up 11%). Yahoo is down 7%, Ask is down 13% and MSN is down 33%." You can draw your own conclusions as to who, wants to acquire who, what and why.

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