Does anyone else find this amusing?
Microsoft makes a bid for Yahoo! and Google
screams monopoly.
I am a big Google fan. While some of their tactics are questionable
(especially if you are a publisher), their overall mission is admirable.
But, who has more of a monopoly on all things
Internet than Google?
According to the Outsell Inc report Information
Industry Market Size and Share Rankings: Preliminary 2007 Results (purchase
required): “Total information industry growth with Google included as 5.3% but
without Google this figure falls to 3.8%.”
That represents a 1.5% impact on growth in a $381B
industry (as estimated by Outsell in that same report).
That statistic only talks about their percentage
as an information industry application, service, and content (?) provider.
What about Google’s position as the purveyor of
online advertising? What percentage of that
market is controlled by Google? I don’t
know, but I bet it’s pretty near a monopoly standing.
So is it okay to be a monopoly if you’re Google
but not okay if you aren’t?
See also: Google
Works to Torpedo Microsoft Bid for Yahoo! in the New York Times.
Wally – you just might be right!
Ann, I don’t see this as a tantrum. I see it as a very calculated move. Google’s moves don’t even have to result in the blocking of the merger. The longer it takes for the issue to resolve the more time Yahoo and Microsoft will spend concentrating on that instead of business and the less likely the acquisition is to work in the end.
Technically, too, being the dominant player in any market does not make you a monopoly. Google does far better than anyone else on search (65 percent of US searches) but has fewer daily visitors than Yahoo.
Yes Mary, isn’t if funny how us little guys don’t get away with tantrums!! We have to watch the big guys and be appalled!
A company named “Google” throwing a tantrum? Seems apt, now doesn’t it?
Yes, it continues to amaze me how big, supposedly professional companies act. But in this case, I think Barry’s analysis is spot on. It was a predictable move in the standard chess game.
Hi Barry!
I like your definition of monopoly (spoken as an ex-AT&T employee – back when they were all capital letters!).
I think your analysis is right on too – this is win-win for Google.
I just hate it when companies appear to be throwing tantrums!
Ann
I think the definition of monopoly is when your competitor leverages their market position to further strengthen themselves.
When your company does it, it’s simply an effort to provide your clients with the services they require.
Actually, I think Google is making a fuss for two reasons:
1. To get even with MSFT for its actions on the DoubleClick acquisition; and
2. To make MSFT and YHOO go through more turmoil during the pre-close “purgatory” while Google can focus on building their business.
For them, it’s a win-win. If they actually scuttle the deal, they avoid a potential competitor; if the deal goes through, it makes it harder for others to accuse Google of antitrust violations in a future acquisition.