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Microhoo Would Still be Chasing Google

  • Ad Age, Monday, February 4, 2008 11:45 AM
The most surprising thing about a Microsoft-Yahoo merger is how little affect it would have on the Internet advertising business in the short-term. True, Microsoft would gain a substantial share of the search market, but Google wouldn't be losing any, and Microhoo's combined share would still only be half that of Google. Worse, the merger comes at a time when Yahoo's search share is on the wane.

On the non-search front, adding Yahoo to adCenter would certainly give the combined company a broader array of ad units to offer advertisers, but both companies, despite the breadth of offerings, have been unable to properly integrate. So why would a bigger, bulkier combined company would do any better? Indeed, there are "gargantuan challenges" to merging two companies of their size, and that can only begin post-regulatory approval.

As 360i CEO Bryan Wiener says, "It's two non-integrated giants merging together, and I don't see how that equates to one cohesive offering,"

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