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YAHOO! MERGER WITH BING GIVES A BOOST TO GOOGLE

After one year, CEO tries to explain away 'negative value'
Dateline: 18 August 2010

Last year’s merger between Yahoo! and Microsoft’s search business, has had unforeseen consequences on the overall search and advertising market.

In the middle of 2009 Yahoo! and Microsoft had a market share of 19.5% and 8.5% of the US search market respectively.

Rather than the merger consolidating and improving their market share in search, today’s numbers of a total market share of just 20% show that the merger has been a negative for the partners and extremely positive for Google, whose market share now stands at 75% in the USA.

Disappointing financial results continue to plague Microsoft as its operating system and Office software sales have shown no signs of a much-promised ‘take off’ post the Credit Crunch.

Meanwhile, Google continues to threaten Microsoft’s core business with the success of its Wave platform and the whole notion of web browser-based (rather than operating system-based) applications.

Investment website 24/7 Wall Street estimates that Google could destroy 20-30% of Microsoft’s core business in the next 24 months.

Already investors appear to be discounting Microsoft’s future troubles as the stock closed down on a strong ‘sell’ recommendation yesterday.

It is not all good news for Google. Anti-trust actions in the US, China and EU are starting again – and this time the target is not Microsoft, but Google.

Welcome to the price of unbridled success.

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Warning: Hazardous Thinking at Work

Despite appearances to the contrary, Futureworld cannot and does not predict the future. Our Mindbullets scenarios are fictitious and designed purely to explore possible futures, challenge and stimulate strategic thinking. Use these at your own risk. Any reference to actual people, entities or events is entirely allegorical. Copyright Futureworld International Limited. Reproduction or distribution permitted only with recognition of Copyright and the inclusion of this disclaimer. © Public domain image.

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