A few hours ago I read that Microsoft has reached a deal with Yahoo. For those of you that don't know the history - Microsoft has been trying to purchase Yahoo for a while now (early 2008). See way back in the day, Yahoo was everything. Not only did were they the first big search engine, they also owned the market share. Then came along Google and we all know what happened after that. I remember reading a quote from a Yahoo employee admitting that even though they were first, Google had clearly won the search wars. 

So what about Microsoft? There are a lot of similarities in both of the companies. Each company already had their 'honeymoon years', each had younger companies gunning for their spot. Both companies are trying to catch up with everyone around them, let's see.
Google revolutionized how we use the web to work, Microsoft took way too long to realize the web was the future. Now Google has a kick-ass web browser, a soon to be operating system, a ton of software packages. Software that is not only free but doesn't need to be installed. Oh yeah they also give free email hosting that blows Microsoft's costly Exchange solution out of the water. Should I even go on? Google Wave anyone?
So what does Microsoft do? Office Live, Windows Live? Anyone even remember these services?
Yahoo declined Microsoft's offer a few times, but in the end it seems they caved in. Let's read a quote from the original article I read.
Google revolutionized how we use the web to work, Microsoft took way too long to realize the web was the future. Now Google has a kick-ass web browser, a soon to be operating system, a ton of software packages. Software that is not only free but doesn't need to be installed. Oh yeah they also give free email hosting that blows Microsoft's costly Exchange solution out of the water. Should I even go on? Google Wave anyone?
So what does Microsoft do? Office Live, Windows Live? Anyone even remember these services?
If you can't beat 'em, buy 'em!
Back on topic - Microsoft wanted to purchase Yahoo to try and desperately gain some ground in the search engine world. Even though their browser's default home page was MSN.com and they now have two search engines, Live and Bing, they were still loosing big time. Depending on which report provider you get, you will get different results - however most reports show that Google controls 60% of the search engine market. Leaving Yahoo with 20% and the rest for Microsoft, Ask, and other smaller sites.Yahoo declined Microsoft's offer a few times, but in the end it seems they caved in. Let's read a quote from the original article I read.
Microsoft wins in other ways. The deal gives a big boost to Bing. The combined search market share of Yahoo and Microsoft would approach 30%. That's still far below Google's 65%, but analysts say it may provide enough of a critical mass at least to stave off further Google advances and help the enlarged search engine gain some ground. At a minimum, the deal doubles as a kind of insurance policy for Microsoft, in case all of the positive buzz about the Bing search engine doesn't translate into actual market share. By adding Yahoo's 20% market share, Bing assures its place as the only search engine provider other than Google with size that really matters.
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