Here’s a killer question for the day:
Could a combination of the two (Yahoo and Microsoft) take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors’ email, IM, and Web-based services?
That’s the agenda-laden question posted by Google senior vice president and chief legal officer David Drummond in the company’s official blog to urge policymakers to halt Microsoft’s highly publicized bid to take over Yahoo!
I find it ironic since Google has been a subject of some antitrust issues for its acquisitions. Perhaps, the notion of combining the industry’s 2nd and 3rd biggest players is something too intimidating. Not to mention that Yahoo and Microsoft are the no. 1 and no. 2 suppliers of email and IM services.
Microsoft retorted to the embittered online advertising giant that this acquisition will not create a dent on Google’s 75% market share in terms of Web search revenues. It will simply lead to “less competition on the Internet†and make it a “compelling number two competitor for Internet search and online advertisingâ€.
Sad emoticon for Yahoo!
Rumor has it that Yahoo feels the $31-a-share bid undervalues the company and will open up collaboration with Google just to pressure Bill Gate’s empire to up the ante. An analyst estimates Yahoo’s share to be around $39 to $45 per share.
I’m pretty even the idea of talking with Google will make the antitrust regulators really crazy! In short, it’s not a credible bluff. For now, Jerry Yang and gang are stuck between a rock and a hard place.
Originally posted on February 4, 2008 @ 7:10 am