Is search a natural monopoly? Maybe not. Silicon Alley Insider points to the latest comScore figures showing that Yahoo's query share in the U.S. market has actually stabilized at around 20.5% over
the last nine months. Of course, this is only the U.S. market, and comScore is just one measurement service, but the news is encouraging for Yahoo, nevertheless. SAI's Henry Blodget expressed surprise
that stabilization occurred in the 20% range and not 10 or 15.
This certainly doesn't mean that Yahoo is ready to mount a comeback in search. However, if Yahoo were able to claw back
search share, it would drastically change the picture for Microsoft, which desperately wants to acquire Yahoo's search business.
As long as Yahoo's search query share remains stable, Yahoo
CEO Carol Bartz can afford to play wait-and-see, as rushing into a deal only benefits Microsoft. And if query share goes up, the value of Yahoo Search also goes up. Therefore, Blodget says, Yahoo's
search trends "merit close observation in the next few months."
Read the whole story at Silicon Alley Insider »