Yahoo has done a deal with Google, to stave off falling into the clutches of Microsoft.
Adam, who has no financial interest of any sort in any of the players, thinks this is a bad thing for a number of reasons including:-
increased market domination by Google
loss of valueover time for Yahoo shareholders
smacking of an ego trip for Jerry Yang, Yahoo founder.
Adam was therefore pleased to read this in an FT editorial:-
The current saga began when Microsoft approached Yahoo about a takeover, with the goal of creating a stronger competitor to Google. The two sides, however, could not agree on price and, left stranded as an independent company, Yahoo has done a deal with Google to shore up its position. That deal will mean that Google advertisements appear alongside some of Yahoo’s search results in the US and Canada.
Why this is better for Yahoo shareholders than a sale to Microsoft at a generous premium is something that Jerry Yang, Yahoo’s chief executive, has failed to explain. He has, in effect, conceded that Yahoo needs a partner but failed to extract a price in return.
Hear, hear. Yang should be ousted. he and Yahoo are not performing, let the boys from Redmond have a go! Adam has no love for either Microsoft or Google, but he thinks Google needs a major challenger and has had it all it’s way for too long.
The FT concludes:-
There is also an important distinction between the market for web searches and the market for advertisements alongside them. Google’s search advertising system becomes harder to challenge the more other sites adopt it. To allow Google to serve all the adverts, even if the search sites themselves remain competitive, would be like allowing one company to sell the advertisements in every newspaper. This deal brings that closer, it stifles competition and it should be stopped
It is hard to avoid the conclusion that many allow Google to do things because they are against Microsoft. This is silly, both companies are behemoths which need watching.
The links below are from the editorial to other FT articles on this topic, some may require registration, and/or payment, for example the Lex item.
Yahoo+Google=Lack of Competition
By adamsmith1922Yahoo has done a deal with Google, to stave off falling into the clutches of Microsoft.
Adam, who has no financial interest of any sort in any of the players, thinks this is a bad thing for a number of reasons including:-
Adam was therefore pleased to read this in an FT editorial:-
Hear, hear. Yang should be ousted. he and Yahoo are not performing, let the boys from Redmond have a go! Adam has no love for either Microsoft or Google, but he thinks Google needs a major challenger and has had it all it’s way for too long.
The FT concludes:-
It is hard to avoid the conclusion that many allow Google to do things because they are against Microsoft. This is silly, both companies are behemoths which need watching.
The links below are from the editorial to other FT articles on this topic, some may require registration, and/or payment, for example the Lex item.
FT EDITOR’S CHOICE
Google-Yahoo ad deal faces intense scrutiny - Jun-13
Lex: Yahoo and Microsoft - Jun-13
In depth: Battle for Yahoo - Jun-13
Yahoo in search deal with Google - Jun-13
Tech blog: Google, a wolf in sheep’s clothing? - Jun-13
Yahoo put in tight position with Google deal - Jun-13
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Tags: anti-competitive, Google, Internet, Microsoft, Yahoo
This entry was posted on June 14, 2008 at 12:36 pm and is filed under Blogging, Governance, Internet, Knowledge Economy, Media, Microsoft, Social Commentary, Technology, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.