Why Google Outshines Yahoo and Microsoft

In the virtual realm of the World Wide Web, only three companies are vying for the top spot – Google, Yahoo, and Microsoft. Although Microsoft still holds the crown in terms of profits, recent events showed that Google has outshined its competitors as it monetizes the advertising and marketing opportunities provided by the internet.

Failure of the much anticipated deal.

Google continues to prosper as Yahoo suffers. The hopes of Yahoo shareholders evaporated after their recent deal with Google failed.

Knowing that Google reaps a lot from internet advertising, Yahoo attempted to divert its rival’s income to the company’s gradually depreciating funds. Such attempt was made through an advertising alliance with Google. Since the latter was obviously prospering through its series of advertising campaigns and programs, Yahoo thought that it can gain its fair share of profits without the need to take uncalculated risks posed by competing with Google.

Why did the deal fail?

Yahoo bosses assumed that an advertising agreement with Google with boost their profits and shares. Unfortunately, they were terribly wrong.

After much anticipation and hope, Google backed-out from the deal and proved that Yahoo’s persistent efforts were ineffective. While Yahoo modified its agreement in order to please some regulators, Google cancelled the agreement implying that pursuing the deal would be an attempt to “damage” their relationships with their partners.
 
According to experts, the said alliance failed primarily because the team-up didn’t achieve support from various companies and competition watchdogs. Aside from the fact that even the US Department of Justice strongly objected the team-up, many other trade and business regulators did not express their appreciation of the alliance. In fact, companies in other fields – from those in the advertising sector to those in the trade and commerce industry – also noted that they were worried.

If the deal pushed through, Google and Yahoo would have conquered the online advertising market. Being the main medium for modern communication, the companies would have gained much from the deal. The monopolization of display advertising and paid search advertising would have resulted to the dependence of other companies on them. Unfortunately, that would have led to unfair competition and online dominance.
 
Yahoo left with no reprieve…

Before its failure with its alliance with Google, Microsoft offered a takeover bid to Yahoo.
The big-time company offered $33 for every share. Unfortunately Mr. Jerry Yang, Yahoo’s founder and chief executive rejected the take-over.

Yang and his company board noted that there was no need for a sale since the advertising deal with Google seemed to be very profitable. Promising rewards to the shareholders, Yahoo now face embarrassment as its shares has been significantly reduce to just $11 now. Moreover, experts notes that although Yahoo sites are still the most commonly used internet destinations around the globe, such is not enough to generate enough profits for sustenance and further development.

They point out that the company lacks the “buzz” that it needs in order to continuously prosper. They also note that Yahoo lacks a concrete business model.

The ultimate victor – Google.

Undeniably, the scenario turns to be another success story for Google. It has successfully hindered the collaboration between Yahoo and Microsoft. Such brought much of Microsoft’s corporate efforts and funds into waste.
 
On the side, Yahoo obviously suffers from the need to find more investments for opportunities of growth and expansion. However, the sad news is that – it might lose its present shareholders instead of gaining more. Many doubt Yang’s business leadership.

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