Google reacts to Microsoft’s move to acquire Yahoo, then Microsoft responds

We all heard of Microsoft’s move to acquire Yahoo! for $31 per share. Up until now, Yahoo! has not really responded but today Google posted a blog post “out of the blue” by David Drummond, Senior Vice President, Corporate Development and Chief Legal Officer with the title “Yahoo! and the future of the Internet“.

The post states, that the acquisition; “…raises troubling questions.”, “…establish proprietary monopolies — and then leverage its dominance…”, “…Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet.”

Let us remember, that this post is from Google. The company that once was a underdog and in 2008 has become THE Internet company and has a market share of about 75% of all search queries. Google talking about messaging and web email accounts makes one think if Google simply tries to distract the users from the real fact that Google has become the monopolist in this day and age. Most people nowadays think of Google as the Microsoft and see that Microsoft has changed.

On another point, I don’t think that Google who has an overwhelming share in text adds and can influence peoples way of how search results will be displayed can talk about concerns when Microsoft and Yahoo! get together and “might” do the same for direct messaging and emails!

Anyhow, Microsoft just issued a reply by Brad Smith, General Counsel. Here is the statement in full (yes it is short, but precise);

“The combination of Microsoft and Yahoo! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising. The alternative scenarios only lead to less competition on the Internet.

Today, Google is the dominant search engine and advertising company on the Web. Google has amassed about 75 percent of paid search revenues worldwide and its share continues to grow. According to published reports, Google currently has more than 65 percent search query share in the U.S. and more than 85 percent in Europe. Microsoft and Yahoo! on the other hand have roughly 30 percent combined in the U.S. and approximately 10 percent combined in Europe.

Microsoft is committed to openness, innovation, and the protection of privacy on the Internet. We believe that the combination of Microsoft and Yahoo! will advance these goals.”

Personally, we welcome Microsoft’s move to acquire Yahoo! to build a competitive marketplace and give us users a different choice for search and email.

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