08S7A's Economics Blog
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Tuesday, May 20, 2008
posted byRui Xian


The verb “googling” has become synonymous with Internet searches, a fact that speaks to Google’s dominance. But don’t expect the verb “msn-yahooing” to become part of the lexicon anytime soon.

Even with the $44.6 billion bid by Microsoft Corp. to buy Yahoo Inc., the combined company would be unable to knock Google Inc. off its web search and web advertising throne, industry watchers say.

“It’s going to be awfully hard to take two complex companies that are trailing, put them together to beat a company that has the tremendous momentum of Google,” says Bob Monroe, associate teaching professor in information technology and computer science at the Tepper School of Business at Carnegie Mellon in Pittsburgh, PA.

ndeed, even a merged Microsoft and Yahoo would still be dwarfed by Google. The web giant holds nearly 60 percent of the Internet search market share, compared to what would be a 33 percent stake for the combined Microsoft-Yahoo.

But the deal would go a long way in helping the two companies in their battle for the lucrative Internet advertising space that is expected to explode in the next decade. “I think this deal is a no brainer,” says Rich Munarriz, senior analyst of media and technology at The Motley Fool. They need to marry, he explains, because alone they would be unable to at least give Google a run for its money.


5:08 AM