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Google, Yahoo, and the Elephant In the Room

CWmike writes "Linda Rosencrance reports that despite assurances from Google and Yahoo that their online advertising deal doesn't need regulatory approval, the two companies should not be too quick to dismiss Microsoft's influence on Capitol Hill. Andrew Frank, an analyst at Gartner, said both Yahoo and Google will benefit from the deal, but he also said Microsoft will do everything in its power to bring the arrangement to a screeching halt. 'Expect Microsoft to challenge it and come back aggressively with some search plans of its own,' he said. Rob Enderle, of the Enderle Group, said Microsoft is a formidable opponent and knows how to play politics. 'Without Microsoft, this probably would stand up to regulatory scrutiny,' Enderle said. 'But Microsoft has increased its presence on Capitol Hill significantly ... and there are restraint of trade issues, so by the nature of Google's size and because Microsoft is going to be pounding on a lot of doors, I think this is going to be a problem.'"

12 of 123 comments (clear)

  1. Bragging about Corruption. by twitter · · Score: 4, Interesting

    No matter how many times it's done, it's always amazing to see people endorse corruption. The anti-trust trial, destruction of competitors, ISO have all left a bad taste in people's mouth. Yet it seems there's always someone that says these "sharp" business practices are good and another that demands people respect them.

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  2. A new front by j35ter · · Score: 3, Interesting

    Google and Yahoo should start their own operating system business...just to make a point

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    Delta-Mike November Bravo Tango
  3. The elephant may smash all the chairs in the room by cp.tar · · Score: 4, Interesting

    ... but the Google-Yahoo deal is non-exclusive, so I guess that'll get them off the hook.

    I do find it quite ominous that Microsoft has been put on the defensive, and they can only try to defend by making the government stop their competitors.
    They are influential, but it is growing ever more obvious they cannot compete with their own tech, no matter how much money they may have.

    It's sad, really.

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  4. Hmmm. what about Google's payout? by WindBourne · · Score: 2, Interesting

    Google cut the deal such that if somebody else buys Yahoo, then Google get 250M (poison pill). What happens with that?

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  5. M$ might like him to shut up. by ibane · · Score: 2, Interesting

    It's true that M$ is throwing its weight and money around Washington.

    The question is if Enderele's mouth helps or hurts the soft. These kinds of statements are designed to manipulate people on Wall Street, but they are smarter than M$ thinks they are.

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    Intellectual property was the desert property of the twenth century.
  6. Re:Enderle is mostly full of shit by oldhack · · Score: 2, Interesting

    My guess is you're not an ad buyer. How anyone argue Google + Yahoo hookup is not detrimental to competition is beyond me.

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  7. This would be true, if not... by greg_barton · · Score: 2, Interesting

    ...for what Microsoft has been trying to do for the past few months: make them and Yahoo ONE COMPANY. For them to argue that Yahoo and Google cooperating on one deal is worse than them wanting to cooperate with Yahoo on everything would be ludicrous. I wouldn't put it past them to try, but it'll never fly.

  8. Re:The elephant may smash all the chairs in the ro by thermian · · Score: 2, Interesting

    well given how much this line has been used against them, its hardly surprising that they want to see google judged in the same way.

    Or is that 'they want to use it as an excuse to stop google from beating them into a messy pulp on search'.

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  9. Re:Yahoo needs a new board... by Anonymous Coward · · Score: 3, Interesting

    Yahoo is WIDELY used outside the US. In many countries, particularly in South America and Eastern Europe, it is THE go-to web portal and search engine. That is far from a "beaten" company.

    Also, letting themselves be purchased is DEFINITELY not the "best fit from a competition standpoint." Since when is GIVING UP competition? How is consolidating the effective market to two corporations from three pro-competitive?

    Oh, and Yahoo wasn't lazy. They're problem was they tried to do too much at once. They got diluted and distracted, not lathargic.

    That could happen to Google, but so far the people running Google seem to have their heads on straight and are doing quite well.

  10. Re:First Thing We Do, Let's Kill All the Lobbyists by WeirdJohn · · Score: 5, Interesting
    Wouldn't it be nice if all Americans had the access to officials that only lobbyists get?


    Sorry, that only happens in a democracy.

    Yes I know this will be modded into oblivion. But please realise that The Rest Of The World does not acknowledge the USA as a shining example of Democracy and Freedom. I think it's because you've lost that "of the people, by the people, for the people" bit, and now have "of the moneyed, by the moneyed, for the moneyed".

  11. Re:First Thing We Do, Let's Kill All the Lobbyists by susano_otter · · Score: 3, Interesting

    Wouldn't it be nice if all Americans had the access to officials that only lobbyists get?

    All Americans do have that access.

    But officials are a limited resource. Obviously the Americans that work harder to get some of that resource will be the ones who benefit the most from those resources.

    What you're really asking is "wouldn't it be nice if nobody was allowed to put any more effort into influencing officials than the effort I put into it today?"

    And no, that wouldn't be nice at all. It's a free country: Everybody is free to specialize in accessing and influencing officials if they want to, and free to sell the benefits of their specialization to the highest bidder. And free to specialize in something else, and thereby generate enough personal wealth to retain the services of a lobbying specialist. And free to form an association with any number of other like-minded citizens, and pool their wealth for the purpose of accessing and influencing officials either directly, or through the services of a specialist. And free to do none of the above, and whine about it on the Internet instead.
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    Any sufficiently well-organized community is indistinguishable from Government.

  12. Re:The elephant may smash all the chairs in the ro by hairyfeet · · Score: 3, Interesting
    Have you ever tried Hotmail(or whatever they're calling it now) and MSN search(or whatever they're calling it now)? Man, last time I tried those it was like being stuck in a giant infomercial,but without the hot babe to distract me from what a ripoff it was. What is sad is they buy out these small companies that have halfway decent products and then by the time their "design by focus groups and committees" gets done with it there is nothing left but a mess. How this same company made Win2K Pro is beyond me. Now they remind me WAY too much of Symantec. Every year they bolt on more pieces and it just gets to be more bloated.


    And IMHO all this talk of MSFT buying the Yahoo search is a red herring meant to stall while they hope that Icahn can take control of Yahoo and the can snatch up the whole thing. Because if you look at the numbers while Google rules the search Yahoo comes out ahead in webmail. And when combined with Hotmail that would give them a BIG share of the webmail market,which means not only more ad revenue but a ton of data to mine from all those emails. My guess is MSFT is going to try to keep the uncertainty going in the hopes Yahoo stocks will be driven further down and Icahn can take control,at which point they will buy it for less than their original offer. But that is my 02c,YMMV

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