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Microsoft + Yahoo = 2 Google?

Filed under: Business,Computers and Technology — Tags: , , , , , , — Paddy Wallbouncer @ 12:14 pm 2008 February 4

Google is upset that Microsoft wants to take over Yahoo. Yahoo with Microsoft and their search website – together do not surpass Google’s search volume, but it would allow the two together to get a significant amount of search traffic and perhaps overtake Google at sometime in the future. The takeover bid could set the stage for increased competition.

Currently Google is the expensive options of the three in terms of advertising, as demonstrated by the cost of Google Adwords against MSN’s network. That is good for Google and advertising firms, since most ad firms work on a percentage of their costs; but not so good for businesses who need to advertise. Could the merger of MSN and Yahoo raise the price closer to what Google commands –or will it increase pressure on competition and drive internet advertising costs down?

If the later is the case, it is good for the rest of us, but not so good if you hold Google, since they don’t have an operating system (XP, Vista) or leading business software (Microsoft Office) to fall back on.

We’ll keep you informed of this and other technology news.