Microsoft + Yahoo = Google Dominance

   Earlier this week it was announced that Microsoft intends to acquire Yahoo for $44.6 billion. That's a lot of money.  This partnership could theoretically create an alliance that could finally challenge Google's dominance in the field of search engine marketing. However, what sounds good in theory, may not work out so well in actuality. The process of acquiring Yahoo may be long and painful for Microsoft, with little payoff. Microsoft's interest in Yahoo may spark other media companies interest. Time Warner, Comcast, AT&T, and News Corp may also be interested in placing a bid. While it is likely that Microsoft can outbid any competitor, the interest of other companies might drive up the price. Regardless, it can be assured that these other companies - especially Google - will be doing everything they can to prevent this merger. Google's lobbyists in Washington already have a strategy to fight this transaction. If Microsoft is not allowed to acquire Google, they will have spent a lot of money for nothing. Even if they are finally allowed to purchase Yahoo, the process will have taken months, during which time Google will continue to grow, and  draft a strategy for dealing with a major competitor in the marketplace. Google and Yahoo are two non integrated companies who's combined search engine use does not even come close to Google, especially overseas.

    

   When it is all said and done, this deal looks like it will cost Mircosoft much more than it is worth. I do not discount Microsoft's tenacity in making deals work. They are certainly a force to be reckoned with in the media industry. However, unless they have some serious tricks up their sleeve, I see this deal going south real fast.