
Just a quick note people. Yahoo and Microsoft announced a merger today as reported by the CNBC show Squawk on the Street and already Google's stock fell by 1%. Do you need to worry about this ? Yes, to some extent as I have pointed out before I notice My adsense earnings drop significantly when things like this happen but I doubt it will be for very long both Yahoo and Microsoft are kind of soft in the web scene and merging will do very little to rattle Google's strong hold on search with a 56.3% market share.
Microsoft dropped a whopping 44.6 billion to acquire Yahoo another old school internet company that prior to this merger posted weak fourth-quarter earnings and was loosing so much money it had plans to cut 1000 + jobs. So why would Microsoft buy Yahoo ? desperation I think however both companies combined would make them a monster in page views exceeding 70 billion page views a month experts predict which would make them the company / site with the most page views on the web, putting Myspace in second place with 35 billion page view difference.
However pages views does not necessarily mean conversions, ad relevance is key and Google is the king of that and this has been proven time and time again with it's Adwords program raking in a staggering $15.8 billion dollar net revenue for 2008. No one in search marketing can even claim something remotely close to that.
However in the August 2009 issue of Wired magazine an interview with Google's CEO Eric Schmidt points out his paranoia about Microsoft, reminding Google employees to stay on the ball because he feels Microsoft could crush Google at any moment. I think the word " crush " gives Microsoft too much credit yes they are an old school company with lots of money to throw around but they clearly lack talent in the online arena or else they would not have merged with Yahoo. This shows a desperate move on Microsoft's part and solidifies experts opinion that they have no new technological trick up their sleeves to steal the revenue that Google commands, but hey you never know. I guess we will just have to wait and see.











