Microsoft Responds To Yahoo/ Google Advertising Deal
Duncan Riley
40 comments »
Microsoft has responded to news earlier today that Yahoo was testing Google Adsense ads on their search results.
From Brad Smith, Microsoft’s General Counsel:
“Any definitive agreement between Yahoo! and Google would consolidate over 90% of the search advertising market in Google’s hands. This would make the market far less competitive, in sharp contrast to our own proposal to acquire Yahoo! We will assess closely all of our options. Our proposal remains the only alternative put forward that offers Yahoo! shareholders full and fair value for their shares, gives every shareholder a vote on the future of the company, and enhances choice for content creators, advertisers, and consumers.”
The 90% market share in the first line is where the deal may well come unstuck (presuming its expanded). Will Government regulators sit back and allow Google to take a 90% market share through a deal with Yahoo?





This is turning into a “he said’ “she said” thing. Next thing you know Yahoo will start dating Microsoft’s ex boyfriend.
i have got 6 500 internal errors on techcrunch today, what is going on?
Could be a negotiation move.
All I know is that I don’t want anything to be associated with MSN’s horrific search.
Ive been getting the 500 errors too. The site in general has been slow to load for the past week or so. Been getting them on mashable too, both sites use mediatemple right?
@Blue Sunshine
Haha thats so true, as long as I don’t have to use MSN i’m fine.
http://mikesmoneyclub.blogspot.com
sd + bob
I’m getting them as well, have informed TC HQ.
Google thinks they are being so sly to allow this to happen. It will cause them 10x more grief than they think.
Why doesn’t somebody just create a damn search engine that only indexes pages which contain an incidental (say 5%) amount of advertising. This would go along way to increasing search quality.
As for Yahoo - somebody needs to throw the idiot at the helm overboard. Finding creative ways to increase revenue is not the solution to their problems. They’ve been trying that strategy for the past 5 years and have gotten nowhere.
I swear GWB must be moonlighting at Yahoo in his spare time.
Yahoo is about content and google is about search…hmmm true, Microsoft is about IE and Zune
This is a good move by Yahoo to try to piss Microsoft off. But a deal with Yahoo will hurt Google in the long run just as the Myspace deal.
Yes, but there won’t be any “definitive agreement”. Federal regulators will never let this happen… this is nothing more than a way for Yahoo! exec’s to show their whiny shareholders that they wouldn’t make any more money with another ad platform.
But it will fail, and they will make double the money — thus forcing Yahoo’s hand to Microsoft… mark my words.
Until Google Windows is released I think it’s fair. Google may be bad, but it’s far less bad than Microsoft. It’s definitely the lesser of 2 evils.
A long time ago Yahoo! was my primary search engine tool. Over the course of several years I began to use Google more frequently and eventually stopped using Yahoo! for pretty much anything. What is the reason for my switch? Too much clutter!
When you log onto Google you have a few simple choices. When you navigate to Google’s home page you can conduct a search on the following criteria: data, images, maps, news, shopping, or mail. You can even choose to see additional features by selecting the “more” link. *wow!*
Yahoo! was less cluttered in the beginning. Now there home page is a hodge-podge of useless stuff, at least as far as I am concerned. I still use the My Yahoo! Pages from time to time; however, when it comes right down to it, Google gives me what I need without all stuff I don’t need.
My advice to Yahoo! Is “cut the crap”, streamline your home page, give people the option to choose to see more stuff if they desire, and stop trying to be everything to everyone. It seems to be working for Google.
David A Hubbard
President/CEO
Hubbard Genesis Corporation
Oh boo-freaking-hoo Microsoft.
What’s Brad’s opinion of microsoft’s 90 percent market share in operating systems?
Or 90% of bleach is Clorox?
Or 90% of 90% is 81%?
What difference does it make….
Anything that will stop microsoft expanding and put some sort of a hault to thier monopoly is a good thing!
Stop one monopoly with another monopoly? Only in America.
So dumb, Microsoft! Everyone obviously expected them to get angry and they played along. But what a lame blame considering their own market share!
@13 David Hubbard:
Guess you’ve never heard of http://search.yahoo.com/
Getting a large share of a market is in no way illegal. google is getting it through quality of their product. Yahoo and MSFT have tried to compete and failed. What are the regulators going to say? ‘You may not accept any more customers’? Regulators get involved when monopoly gets leveraged to create lock-in (microsoft and OEMs) and invade other markets (microsoft and browsers among others). Until google does something like that, no regulator is going to do anything.
Breaking News- YAHOO AND AOL CLOSE IN ON TIE UP DEAL
ARTICLE HERE
http://online.wsj.com/article/.....02423.html
Microsoft has been fast and efficient in their responses. Applause.
Microsoft have a fair point. They have had the monopoly argument thrown at them for so long, that they must be stunned by the hyprocacy of it all.
too much time wasting commenting on that deal. this story won’t end so soon. let’s just wait for it to end and then all comment.
I think it is necessary to prevail confidence among shareholders and advertisers before finalizing such deal.
Believe it or not I still use excite.com as my home page!
@1 Microsoft’s ex boyfriend? Yahoo! will try to get in bed with IBM? lol
@19 zellius
“Guess you’ve never heard of http://search.yahoo.com/”
That is not my point; I did not have to hear of http://www.google.com. My point is they should swap their home page with their search.yahoo.com page and they may get more traffic.
And now that I know about search.yahoo.com it is too late. I have been using google for too many years now. Yahoo! lost my market share a long time ago.