Google is getting involved in the recently rekindled idea of Microsoft buying Yahoo to create a huge competitor to Google in the online marketing arena. However, I don’t see why Google needs to make such a big deal out of this. It seems they are worried about Yahoo and Microsoft creating this huge competition, but when you look at what all parties involved bring to the table, Google shouldn’t worry about what their competitors are doing together, but focus on their own issues.
Yes, Yahoo and Microsoft together will create a huge player in the display advertising world, but Google doesn’t play in that space as much. Microsoft and Yahoo both have several acquisitions in the display arena in previous years like Tacoda and Blue Lithium and aQuantive to bolster their display advertising capabilities. Micrososft has invested in Facebook for the Social Network play. Google needs to realize as they grow, they won’t be the best at everything (think Google video here) and cannot make huge profits on every business unit (Youtube here, along with Google print and radio ads). What Google does best is bring results back to users, and they make a ton of money selling ads on those results.
Yahoo and Microsoft (if together) will make money through portal advertising and optimization technology. Google will make money selling search ads. Last time I checked, there is plenty of money to be made with online advertising (read any article about ad spending and online is growing fastest) so if the merger happens, embrace it. If anything it might make more people advertise online and spread money across the board (which Google is a large piece of) in online marketing.
Google needs to get over their little fit, let the deal happen and focus on where they provide the best product, search. Microsoft would gain a bigger portion of the search world, but Google wouldn’t lose any.
Tags: Google, Media mergers, Microhoo, Microsoft, Yahoo!
