Microsoft has openly declared that its bid to acquire Yahoo aims at improving their position in advertisement and fight the dominant position of Google. Do not expect Google to remain quiet.
What are Google options to defend from Microsoft, apart from sending missives? Counter bidding for Yahoo, is not an option as it would not be approved by authorities. Getting a deal to post Google ads on Yahoo search, would give Yahoo some air to look for alternatives to Microsoft bid, but still Google would be helping a direct competitor, not to be underestimated.
So in the event the acquisition succeeds, what should Google do?
I would recommend: Hit them where it hurts
Microsoft gets a big chunk of their revenue, and more importantly of the profits, from Windows and Office software licenses. These profits are to finance the online services of a merged Yahoo-Microsoft Live.
What can Google do about that? Goobuntu. The same way Google is bringing Linux to mobile devices with Android, Google is the only company that could make Linux conquer the desktop and hurt Windows and Office.
People love Google, and many people hate Microsoft. Hit them now. Millions of users would thank you, Google.
Note: Meantime, the bid already had its effects and Yahoo is stopping its online music service.
The news of the day is the Microsoft bid to acquire Yahoo. There has been rumours for years on this wedding. Lately many articles were rising serious doubts on Yahoo’s strategy to compete with Google, and that is certainly accelerating the action. See Yahoo news during the past days:
Let’s Trash Yahoo During Happy Hour, TechCrunch
Yahoo serves up layoffs but no strategy, Cnet
Yahoo to lay off 1,000, Q4 profit drops, ZDnet
Yahoo’s Vision-Goes-Here Strategy, NYT
Yahoo: Terry Semel off the board, Cnet
The Apologetic Jerry Yang, NYT
Now Microsoft has moved, only hours after Yahoo was rumoured to acquire Maven Networks, a video hosting service for $160m. Microsoft bid for Yahoo clearly aims at giving battle to Google on Advertisement.
NYT compiles first blogs reactions to the take-over bid in this article. GigaOm’s reaction is not in the compilation but it is a good analysis.
With the 65% premium on price, the take-over is likely to succeed. And then, what will happen with the plans for Yahoo music store? and to the Yahoo mobile aspirations?
The Guardian online edition publish an article that reveals how the Music Industry is not the only one that ‘suffers’ from Internet effects.
All this online sharing has to stop is worth reading.
Sooner or later the music industry will need to accept the new order and transform. The labels that delay to adapt are the most likely to disappear.