If you haven't heard by now, Microsoft has offered to buy Yahoo for 44.6 BILLION dollars. So of course it's rumored that Google will outbid MS. What does this mean for SEO and SEM? Too early to tell.

According to industry analyst Greg Sterling of Sterling Market Intelligence, a combined Microsoft-Yahoo would improve the companies' respective positions in the search market, but still wouldn't top Google, which has a dominant lead both in search engine usage and advertising.

Allan Krans, an analyst at Technology Business Research Inc. pointed out that by combining forces, Microsoft and Yahoo wouldn't be competing with each other and could concentrate on catching up with Google."Microsoft and Yahoo could combine their best features and try to gain ground on Google as one. Microsoft is trying to drive the popularity of its Windows and Office tools through their online offerings, while Yahoo has popular e-mail services and strength in its [online user] groups. Once people sign up and participate in those groups, it tends to be a very sticky thing. People don't jump around."

From Reuters:

Yahoo Inc would consider a business alliance with Google Inc as one way to rebuff a $44.6 billion takeover proposal by Microsoft, a source familiar with Yahoo's strategy said on Sunday.

Yahoo management is considering revisiting talks it held with Google several months ago on an alliance as an alternative to Microsoft's bid, which, at $31 a share, Yahoo management believes undervalues the company, the source said. Google is not happy about the potential partnership! Separately, Google Inc fired back on Sunday at Microsoft Corp's bid to acquire Yahoo Inc, accusing Microsoft of seeking to extend its computer software monopoly deeper into the Internet realm.

Will we end up with Yahsoft, Microhoo or Yahoogle?

Nicole E

SEO/SEM Expert