Microhoo??

In 2009, Microsoft and Yahoo had finally come to an agreement, after seeming eternal on and off negotiations, to join forces launching their new searcher, for a period of 10 years. The media then had baptised them Microhoo! This is a bit premature and exaggerated, as these two giants have not joined companies, only that Yahoo would be using the Microsoft Bing and included the publicity, a considerable challenge for Google. At that time, Yahoo and Microsoft had, in the US, 28% of the searches, and Google 65%.

Yahoo wanted to concentrate more in developing in other areas with more valid and solid contents to offer to their 300 million visitors monthly. Some share-holders of Yahoo were surprised that Yahoo should "give away free milk instead of forcing Microsoft to buy the cow", referring to the founder of Yahoo, Jerry Yang's refusal to accept any less than 45,000 million to sell. But no doubt, the company would pocket a fair handsome percentage of the income derived from the publicity through the alliance.

I couldn't be any dumber in matters of business and finance, but judging by the Yahoo share drastically down after the news, I reckoned Microsoft had the better share of the cake gaining visibility in the search market and diminishing Google somewhat. Ten years is eternity in Internet. The mystery was how things were going to evolve and it might not be totally improbable the the inventor of Microhoo had some foresight after all.

I paid little attention to the outcome but, just once in a while, I can't help wondering, in business, when success or failure depends on who reaps more benefit ... well is that Micro or Hoo?

Tags:microsoft,yahoo

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