Analyst: Microsoft's urgent need to buy Yahoo challenges Google


February 28, according to foreign media reports, some analysts pointed out recently that there is an urgent need for Microsoft to buy Yahoo, so as to enhance market competitiveness challenge Google.

Street site, according to reports, as Microsoft and Google, increasing competition, while Yahoo will benefit from it. Therefore, Microsoft's potential acquisition of Yahoo as an object of value is also increasing.

Last year, the "Wall Street Journal" has reported the rumor about Microsoft's acquisition of Yahoo. Today, this potential M & A transactions has become more urgent.

Currently, Google still dominates the search market. Since last May came the news of Yahoo, Microsoft may be after the merger, Google's market share continued to climb, while Microsoft's market share has declined.

According to research firm ComScore data, 9 months ago, Google's market share of 44.1% and Microsoft 12.9%. And in January 2007, Google's share rose to 47.5%, while Microsoft's share dropped to 10.6%.

If the Microsoft acquisition of Yahoo, then the two sides together, 38.7% market share, you can create enough pressure on Google. Coupled with the promotion of Vista, Microsoft's prospects in the search market will be more substantial.

Some people may doubt whether Microsoft will conduct such a large acquisition. Do not forget, Microsoft has seriously considered M & SAP. SAP's market capitalization of 56 billion U.S. dollars, while Yahoo's market capitalization is only 44 billion U.S. dollars.

In addition, Google's invasion also forced Microsoft to carry out large-scale mergers and acquisitions. In addition to Yahoo, Microsoft merger in search of other competitors unlikely.

Ask.com has a 5.4% market share, but to from IAC / InterActiveCorp acquired Ask.com is almost impossible. In addition, AOL has with Google. Therefore, only for Microsoft's acquisition of Yahoo.