Friday, November 30, 2012

Agony of the second spot

Yahoo!'s only worthwhile option now seems to be AOL

The saga of the top three search engine providers has a script quite similar to a typical love triangle. First, Microsoft made public a hostile bid of $31 per share to acquire Yahoo!, which was later raised to $33 per share earlier this year; but Yahoo!’s board declined the offer. Then Yahoo! rushed for a tie up with Google; but has itself become the scorned suitor now; with Google citing regulatory issues (parents in the love triangle analogy!). Google was looking at placing ads on Yahoo!’s search queries, which would have brought as much as 80% of the search advertising market into Google's control. But Google opted to move out citing that it would’ve resulted in protracted legal battle and damaged its relationships with partners. In addition, the search engine giant also blamed regulator and advertiser concerns after the Justice Department’s interference.

Rob Enderle, Prinicipal Analyst, Enderle Group says, “The impact of the deal plug out will probably be harder on Yahoo! than on Google which is why Google pulled the plug. It leaves Yahoo! looking like they were unable to execute another strategy and Google remains dominant in the space.”


Source : IIPM Editorial, 2012.

For More IIPM Info, Visit below mentioned IIPM articles.