Will Yahoo’s fate give Google dominance?

Yahoo’s currently stuck between a rock and a hard place and whatever decision it now makes is raising concerns about the online competitive landscape.

Following Microsoft’s hostile takeover bid, at $31 per share, and with no other offers, shareholders could get lawsuit-happy should they turn it down.

As Michael Arrington at TechCrunch points out, the only other solution might be to outsource search advertising to Google, which could boost cashflow and justify snubbing the big blue beast.

Yahoo’s pride aside, Michael goes on to say that Microsoft might be seen as the more competitive way to go by the DOJ (who could put a stop to either deal), rather than Google swallowing up one of it’s market rivals.

While in principle this makes sense, how much difference would it really make? In Q4 2007, Google took 77% of total search marketing spend, with Yahoo taking a comparatively measly 18%.

One company engineering a monopoly is always a bit worrying but if marketers and advertisers have already decided Google’s where they want to spend their money, is there really much left to monopolise?


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