Monopolizing the Search Engines: Google, Yahoo Control Market. Microsoft Cries Like a Baby

2008-04-11 04:13:45 (GMT) (WiredPRNews.com - Business, Featured Stories, Technology)

Dallas, Texas (WiredPRNews.com) In what has been a major power struggle between Yahoo and Microsoft, a new shift has emerged that could combine forces of two of the largest search engines leaving the software giant in the dust.

According to a new report on BetaNews.com, Yahoo will, in the wake of refusing Microsoft’s multiple attempts at a merger, “will imbue up to three percent of readers’ search queries with ads generated using Google’s AdSense for Search service.” Google took an advantageous grip on the market with AdSense for Search or Pay Per Click ads (PPC) by giving “other Web sites a mechanism for its users to search the Web using Google, with AdSense ads appearing next to the results, and with sites sharing in Google’s revenue.”

Once the transition has been made, Yahoo users will find AdSense ads alongside their organic search results. Although Yahoo’s statement did not directly approach the matter as to whether or not they would claim a share of the ad revenue, nor did Google comment on if they are playing any part in the decision.

Yahoo’s statement released yesterday played on the prior weeks’ stories of the struggle of shareholders and danced around the fact that Microsoft is in the ultimate submission right now. The statement reads:

“As previously announced, Yahoo’s board of directors is exploring strategic alternatives to maximize stockholder value, including exploration of potential commercial business arrangements. The Company noted that the testing does not necessarily mean that Yahoo will join the AdSense for Search program or that any further commercial relationship with Google will result. The Company further stated that it would not comment on the nature or timing of any potential relationship.”

Although Microsoft was not directly mentioned in the statement, it becomes obvious of who is being pushed to the side. In addition, the statement made no mention as to whether or not Yahoo and Google will extend the trial relationship into a full fledged partnership. This announcement came much to the chagrin of Microsoft execs who argue that a Yahoo/Google relationship could essentially monopolize the market leaving their giant company to find alternative ventures.

In their rebuttal statement, Microsoft General Counsel Brad Smith explained, “Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”

Microsoft has always been a bully and was late getting into search engine market. With inferior results, Google followed by Yahoo are far superior search engines. Microsoft should keep focused on fixing Vista bugs and focus on core area and leave the search engine business to the GURU’s.