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Overall I think you are right though... dead leading the blind.
The real question is: Can Google compete with Microsoft's ad network and Yahoo's Search engine?
Clearly the answer is no.
Google has aquired a few tiny companies that produce no real revenue, while Microsoft has been eating away at its core money maker, ads. This equals signifigant losses or maybe even death for Google.
I would love to be proven wrong by a more mature MS, whether it is led by Ray Ozzie or whoever. But anyone who remembers when the independent Hotmail was actually usable can see what this change will likely (with a high degree of probability) lead to.
Oh, and who knows how crummy Flickr could get?
In this case, I am hoping that MS surprises with sensible design practices. But I am not betting on it.
Microsoft certainly doesn't have the best track record in acquisitions (ie. Hotmail, Driveoff.com) and doesn't appear to be very in tune with what its users really want (ie. Vista, most of the MSN sites?).
On a positive note (since nobody else seems to be) there is potential for synergies from leveraging Yahoo! web services with Microsoft capabilities in desktop and at home media. (Apologies for Buzzword overkill).
Also, in case you forgot to celebrate, Vista celebrated its 1 year anniversary on Jan 30.
You forget one little thing.
Google doesn't own it's business model. Yahoo has patent throw acquisition of some company.
So when MS will get it's hands on it things would get interesting...
It's not that I question your assertion; it's just that I'd like to read the patent.
http://searchenginewatch.com/showPage.html?page...
Although that patent doesn't really challenge Google's business model. Yahoo could have gotten many billions, if Google's entire business model could have been held hostage.
That patent is for using an auction to determine the *position* of paid results in a search engine. Google could get around that patent simply by using an auction to determine whose ads gets displayed, but not the order in which they are displayed.
Furthermore, that patent would appear to be unenforceable. Radio stations have sold advertising on an auction basis for decades; the idea of selling advertising online the same way would be obvious to anyone involved in advertising. A patent which covers something obvious (to people experienced in the field it covers) will not be upheld in court. Furthermore, Overture filed a defective application for the patent. As prior art, they give patent 5704560, which is a "concrete crusher with cutting shears". They probably meant 5704060, which is "text storage and retrieval system".
If Google had fought in court and won, Google's competitors would feel free to clone that sales mechanism. By licensing it, they avoid legal expenses, and leave a burden in the path of competitors.
I'm sure M$ will make a something out of it.
Yahoo would work better with a media provider, yes, like Twitter.
Best,
CAM
in my opinion this expansion makes really sense.
Each one has some special, Yahoo! services, Microsoft MSN and Google their search engine, the problem is microsoft that can make new things always copy others, they have money but not good ideas, look Facebook, Microsoft already had millions of user but never thought create a social comunity or gruops.
Microsoft has to focus in his original bussines, make a real, good and powerful Operation System, not make games and mp3 players or that garbege call Vista
-Ravindranath Akila...
I am glad that Yahoo has the common decency to refuse total domination by MS (even if they do, I have to admit make half decent O'S.s - XP for example).
What google is giving to people except search.But MS gives nice experience to people by providing UI experience