It looks like Microsoft and Yahoo! are about to close a deal that may lead to Microsoft owning Yahoo!s search business and sharing the revenue with Yahoo! for a number of years. I have a few observations about this:
- Microsoft, with Bing, has already proven itself more adept at search as well as more interested in pursuing a real competitive stance in that arena.
- The partnership could mean close to 30% market share for Microsoft, which would put them in the competitive ballpark.
- Microsoft and Yahoo! seem to serve the same demographic so it may be a great match.
According to HitWise as reported by WebProNews, about 24% of Yahoo!s search business, and 20% of Bing’s, is in the small business/retail category. Here are the numbers:
- Yahoo! Computers/Internet 22.2%
- Yahoo! Entertainment 13.5%
- Yahoo! Shopping and Classifieds 13%
- Yahoo! Business and Finance 11%
- Yahoo! Education 6.1%
- Yahoo! News 5.9%
- Microsoft Computers/Internet 27.8%
- Microsoft Entertainment 13.4%
- Microsoft Shopping and Classifieds 11.7%
- Microsoft Business and Finance 9.6%
- Microsoft Education 5.1%
- Microsoft News 6.6%
Now do you think this will be a good partnership? Will be good for search?