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Return of the Search Wars – Microsoft strikes back!

February 11th, 2008 by

In a business world far far away from here, movements are afoot for the world of search to dramatically change. It has long been rumoured but now it has finally happened. MSN has made an offer to buy out Yahoo. Microsoft has offered to buy the Yahoo for £22.4bn in cash and shares.

It has long since been considered (well around the Click Consult office anyway) that Yahoo is moving backwards in its attempts to claw back some of the search market. This was highlighted this week when Yahoo chief executive, Jerry Yang, announced on Tuesday that he intended to lay off 1,000 staff from the company. This combined along with the 23% fall in profits from last December illustrates the problems that Yahoo is having. Google’s profits were up 17% in its most recent quarter and this was seen as a disappointment by many analysts.

So what does this mean for search?

If this move from Microsoft was to come off, then it would trim this battle down to a head to head war between the two giants. There is no doubt that Microsoft has the financial muscle to make great strides in the industry, but Google always seen to be two steps ahead of their rivals. The key to this battle in my eyes will be Microsoft’s ability to come up with software that can rival Google’s own search algorithm and offer a viable choice for users.

RSS GlobeThis entry was posted on Monday, February 11th, 2008 at 5:20 pm . You can follow any responses to this entry through the RSS feed.

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