Microsoft will ultimately win the Yahoo!
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Microsoft will end up with Yahoo’s search business. This is my last months with Microsoft on the senior management of the company after an in-depth understanding that the only conclusion, even if Microsoft CEO Steve Ballmer’s words and deeds of some strange, but this conclusion is needless challenge .
Microsoft initially even Yahoo’s search business will be selected as the overall acquisition of Yahoo’s primary objective, in order to understand why Microsoft so eager to have Yahoo search business, we must learn is how to treat Microsoft’s Google.
Google "Bifeng" Microsoft’s two main reasons: One is the Google Internet search advertising business because of the rapid growth and achieved the fastest growth in profits; Another reason is that Google snatched the Microsoft "the greatest and The most powerful high-tech companies, "the title and the attendant stakeholders, including the most famous is the market value of the stock market.
But Microsoft will not accept Google is the best high-tech companies of the fact that, I do not accept. Google will be described as the industry leader in technology, which is essentially a misunderstanding of Google’s market success. Google will be in the care of their business in an orderly, and form their own unique business model ━ ━ to search advertising to support its business model.
Google did not create the world’s best high-tech companies, but to create the world’s most powerful market, the most profitable companies. Early on the Google is indeed superior search technology, but now, it is no longer search for information in the best choice.
Microsoft’s own Live.com search sites offer search results in many areas can be comparable with Google, some aspects even better than Google. But not many people know the existence of Live.com, and this situation is almost no possibility of improvement.
Microsoft clearly, it must be developed and is not comparable to Google’s search technology, but with a Google comparable to the market. Recently, I published in the journal of the Microsoft and Microsoft Network on Kevin Johnson, director of the article, he explained Microsoft’s point of view: a search site in the search number, the more the site to attract advertisers may be more . To attract advertisers, the more tender bid search keywords people will be more. In this way, the bigger the size of search firms, revenue per search on the more. Google not only large in scale, every search of higher profits.
We look at eBay’s way of thinking it: You may be reluctant to other auction sites to sell their goods, because the other auction sites on the small buyer. Google in search advertising have made eBay a position. If Google and Yahoo’s search advertising deal successful, Microsoft faced the more severe the problem.
Therefore, even if Microsoft Chi Juzi, pay arduous efforts to develop a worthy and comparable to Google’s search technology, but in the search advertising market "to Google Shibi Gao and" the possibility of very small. That is the case, despite Microsoft’s search results to improve the quality, but its recent months, the market share it had a free fall. According to market analyst firm comScore’s latest data, Microsoft in the search advertising market share has fallen to under 8.5 percent; Yahoo’s market share is still 21 percent, while Google’s share rose to 62 percent,
Microsoft and Google the only way to compete is to the advertising and search markets to a larger scale. Microsoft to expand rapidly in a short time scale, with the exception of Yahoo’s search business acquisitions, have no choice.
This became the "first the chicken or the egg" argument ━ ━ only has size, can Microsoft compete with Google, but if Microsoft can not be successful on the Google competition, will not be able to expand their scale. Unless the acquisition of Yahoo, while Microsoft may be very pleased to receive Yahoo’s human resources, but it does not need talent or Yahoo’s search technology, it is in need of Yahoo’s search traffic and remain attractive brand.
In earning potential, the company also found no other can be comparable with the search advertising business, so it proposed two months ago to 47.5 billion U.S. dollars acquisition of Yahoo. Now it is constantly looking for access to the Yahoo search business other way. Microsoft can not afford to give up the competition with Google. But do not use Yahoo’s search business, Microsoft simply can not compete with Google.
It is reported that Microsoft was in Yahoo’s search business has employed every skills. Most of them reported that Microsoft and Time Warner’s AOL or News Corp’s MySpace jointly, by which the acquisition of a media company other than Yahoo search business. Yahoo also reported that negotiations with the merger of AOL. We want to compete with Google, even a small hope that the MySpace and AOL also like to compete with Google.
Microsoft and Yahoo in the final months of negotiations in the very poor performance, but also occurred between the two sides of the story may be, Yahoo’s stock has recently rebounded slightly. I want to say is that Microsoft will not give up.