PlayerSearch Blog

by Ted Kasten, Founder of PlayerSearch

Yahoo: Out of the pot, into the fire

Yahoo, combined with Microsoft, had a fighting chance to compete with Google (not a great chance, but a chance; Google is en route to a dominating monopoly with search advertising, the most lucrative on-line business, just as Microsoft has with Office, the most lucrative desktop business). Now Google owns even more of the on-line advertising market.

Which of these companies should Yahoo be more worried about as a competitor on-line?

Google will surpass Windows in revenue this year and with its rapid growth may surpass Office in revenue in the not-too-distant future.

Google is incredibly smart and just landed a huge win if this passes anti-trust obstacles. Yahoo on the other hand…well, my bet is that this error will soon dwarf the $5.6 billion they wasted on the now defunct They just waived the white flag and removed themselves from the most lucrative on-line market ever.

I know there has been a lot of talk about Yahoo partnering with Google to fend off Microsoft or to force Microsoft to pay a little more…I never thought they would actually do it.  It appears Michael Arrington agrees.

Michael Arrington of TechCrunch states that we are all worse off with Yahoo giving up and strengthening Google. That statement is especially true if Microsoft cedes the market to Google and stops pouring billions into their search efforts to compete. I do think Michael underestimates Microsoft’s willingness to continue to fight…these guys are the ultimate competitors…they have been around a long time, fought many battles (operating systems, applications, browsers, games and global anti-trust battles) and unlike Jerry Yang and Yahoo they never give up.

I love Google, but as a search advertiser and founder of a vertical search engine for sports (, I will have to cheer for the underdogs to keep a competitive search advertising market with multiple options for advertisers and consumers. I guess I will finally have to sign up for an advertising account!


June 13, 2008 - Posted by | Google | ,

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