Monday, April 16, 2007

DoubleClick Deal - Twist in the Making?

Less than 2 days since Google bought off the Web ad supplier firm DoubleClick Inc. for $3.1 Billion, Microsoft has called regulators to closely scrutinize the deal. It is pretty evident that this deal would add substantially to further elevate the kingpin status that Google enjoys in this arena. Microsoft, the world's largest software maker, said the deal would allow Google to corner the online advertising market and provide them access to a huge amount of information on consumer behavior on the Internet."This proposed acquisition raises serious competition and privacy concerns," said Brad Smith, Microsoft senior vice president and general counsel in an e-mail statement.

Shortly after announcing the deal on Friday, Google Chief Executive Eric Schmidt said in a news conference he expected the deal to be approved by regulators. "This is a very, very competitive market in terms of the number of choices," Schmidt said.
The big question however lingers on. With Google enjoying a massive 64.1% of all US searches, what is the future of the search division of Microsoft and Yahoo? Some analysts have already started predicting a merger between the 2 giants which would put them in a better position. I am not so sure about this, but considering the amount of 'increasing' pressure that Google is subjecting on its rivals, Gates and Co. might just have to consider that option. The stats (from Hitwise) are here for the reference.

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