Wednesday, May 7, 2008

Yahoo vs. Google

Yahoo vs. Google – not anymore, not quiet. The first is facing a takeover from Microsoft, the second is making close to 70 percent more per search advertisement, and continues to increase its presence and its profits. Although Yahoo's reported profits for the first quarter are unexpectedly high, it continues to experience humongous pressure from Microsoft to either except its $31 a share bid or to face the consequences. The "or else" threat, politely issued from Microsoft means a takeover battle Yahoo can ill afford. comScore reports that although two years ago Yahoo's share of search engine advertising market was 29 while Google controlled 45 percent of the market, since then the ration has shifted dramatically. Yahoo lost ground significant and currently has 21 percent of the market share, while Google enjoys 60 and plans to expand aggressively. Should Yahoo decline the offer from Microsoft it just might stay afloat by allowing Google to sell advertising on their search engine. No certain decision in regards to either of the proposals has yet been made. It should be fascinating to watch the battle of the online advertising giants unfold.