Microsoft-Yahoo Alliance is not enough to
Until 2005, Yahoo still provided Internet search features for Microsoft's MSN service, and both companies still account for the bigger pieces of the Internet search market compared to the present. .
But when faced with an ever stronger competitor like Google, they split their own pie, creating their own search engines and search advertising companies. Currently, Google accounts for 54% of Internet search market share, while Yahoo and MSN's market share has declined significantly.
Although negotiations on the possibility of merging Yahoo into Microsoft are now suspended, according to Internet market analysts, the possibility of a merger agreement will inevitably create a double rival. with a larger market share when independent divided like the present.
Yahoo's stock price on the NASDAQ stock market soared 16.5%, following information about the possibility of merging with Microsoft.Photo: AP.
" Over the course of the night, MSN and Yahoo's search market share will be doubled, " said Chris Winfield, President of 10e20, a New York-based company that helps businesses set up marketing campaigns on tools. Internet search identified. " They will still not be as strong as Google, but will be stronger when they stand alone ."
Google announced a record profit of $ 1 billion in the past quarter, thanks to small ads appearing alongside search results. The company announced plans to acquire advertising agency DoubleClick for more than $ 3 billion. DoubleClick specializes in online animation ads, a weak Google array and the inherent strength of Yahoo and MSN.
In the last quarter, Yahoo earned only $ 307 million, while Microsoft said its MSN division had lost $ 200 million.
Google "holds the key to the search market," said Scott Kessler, an analyst with Standard & Poor's. " And I do not believe this will change soon ."
Google is trying to expand beyond the field of search advertising and encroaching on new areas, including placing advertisements for its customers on newspapers and magazines, on radio channels and TV channels. satellite. The company is also trying to get into the content features that are traditional strengths of Yahoo and MSN such as e-mail, IM messages (chat) and personal websites.
But the popularity of the Google search service is so strong that in just a few weeks, Google overtook Microsoft about the world's most visited website. According to statistics of ComScore Media Metrix service, in March, Google had 528 million visitors, while Microsoft's website only reached 526 million and Yahoo 476 million. A year ago, Google only reached 467 million unique visitors.
In 2000, Google started by offering search services to Yahoo. When Google's popularity began to spread, Yahoo worried that Google would overshadow its brand. The company had to dismiss Google's search feature in February 2004 and invest $ 2 billion to build its own Internet search technology.
Meanwhile, MSN's search and advertising search features are still provided by Yahoo until January 2005, when MSN decided to create a division to perform its full potential. this development.
A Microsoft / Yahoo alliance relationship will help each party become more competitive competitors, " but on the condition that Google stand and wait for them to pursue ," said Charlene Li, an analyst. by Forrester Research commented. " And I don't believe that will happen ."
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