If there was ever any question about whether or not Google liked Microsoft, we now know for certain that they don’t. Google actually wrote-up a Press Release to talk about Microsoft’s offer to acquire Yahoo for $44.6 billion. Here are some of the key words and phrases I picked out of the announcement that give us an idea of how they feel about Microsoft’s proposal:
- hostile bid
- inappropriate and illegal influence
- unfair practices
- unfairly limit
Google does not like this offer one bit and it is obvious why. They even point out that both Microsoft and Yahoo have an “overwhelming share of instant messaging and web email accounts” which they do. On the other hand though, if you take a look at search market share, a combined Yahoo and Microsoft would get about 33% of the share while Google has 60%. In some areas Google dominates, but in others they wouldn’t.
Now that Microsoft put their offer on the table, other companies (like News Corp.) and financial institutions may come with an offer as well. An article in the Wall Street Journal points out how even Google wants to “Help Yahoo Fight Off Microsoft.” Their offer is to form some type of alliance which would be an alternative to “giving in to Microsoft.” Can you imagine the scrutiny Google would face if they did in fact form an alliance with Yahoo? Then we’d see Microsoft throwing their arms up and screaming “Monopoly” as Google just did with Microsoft’s offer.
Over at Yahoo headquarters, a memo to employees said: “We want to emphasize that absolutely no decisions have been made — and, despite what some people have tried to suggest, there’s certainly no integration process underway.” All we know is that Yahoo has some big decisions ahead of them which will ultimately affect their future. Any thoughts on which route they should take?