Filed under: Forecasts, Competitive strategy, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Stocks to Buy

With Microsoft Corporation (NASDAQ: MSFT) bidding $44.5 billion for Yahoo, Inc. (NASDAQ: YHOO) one would instantly think that Microsoft is the winner — and they could be — in about a year or so… maybe. In the meantime, Google Inc. (NASDAQ: GOOG) will benefit immediately. The deck chairs are being re-arranged and there will be one less player. But before everyone thinks Microsoft is going to walk away the big winner, think again.

The game changer right now is Google. With 76% search engine market share, it will still be 4X the size of Microsoft after the Yahoo transaction is closed. Google has been successfully expanding its presence globally, and not in just the usual countries, but in the Brazils, the Portugals, the Argentina’s, the Australias, etc. Seeding these remote, but lucrative locations is done and Google is now reaping the rewards.

Google can now capitalize domestically with its customers and Yahoo’s/ Microsoft’s customers as well by playing the disruption card. Basically, when a technology company is about to be acquired a lot of potentially negative things can and do happen: employees and customer relationships are disrupted. Google can unequivocally claim to customers that they are indeed “the” priority right now and that smooth media/advertising projects are awaiting their approval. Yahoo/Microsoft aren’t sure which players are staying or leaving yet. Customers don’t like that!!

Continue reading Google benefits from Microsoft/Yahoo

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This entry was posted on Monday, February 4th, 2008 at 1:34 am and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.