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Tuesday, February 12, 2008

Google Breaks Silence on Microsoft’s Bid for Yahoo

For Affiliate Business owners, some new wave has appeared in the ocean of news. Let's examine if it has the potential to become a tsunami for the rest of us. Here goes:

Ever since I have read the news of the so called ‘unsolicited bid of Yahoo by Microsoft,’ I have been wondering about the third side of this love-hate triangle. You guessed it right. Google. Google till now had maintained its silence which was finally broken by David Drummond, their chief legal counsel.

In a Google blog post Drummond conveyed that the hostile bid “raises troubling questions” about whether Microsoft is attempting to turn its old monopolistic and manipulating tricks to the Internet as it did with the PC.

Now that is ironic because Google is known for its dominance in search and online advertising. It has not reached this position without unsolicited and hostile takeovers themselves.

Right now Google is tied up in acquiring DoubleClick-a display ad serving firm for $3.1 billion. This bid has not been smooth sailing for them as they are facing regulatory challenges by the European Commission. I believe it is trying to turn this whole takeover of Microsoft to its own advantage by diverting the pressure off its own anti trust dealings. (Operators in Affiliate marketing have their own math to do with this new development.)

Even if the blog post is a ruse to ease its own antitrust battles, it still indicates that Google believes the duo could pose a deadly competition if the deal goes through.

I read in The Wall Street Journal report tonight that Google CEO Eric Schmidt called Jerry Yang on Friday and offered his support to Yahoo in fighting the Microsoft bid. That to me indicates that Google views the Microsoft-Yahoo alliance as a real threat. It would be interesting to watch how the story unfolds from here on .. I would keep you posted, that's a promise!

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