Is the Google, Microsoft, Yahoo Search War Settled?

Written on May 16, 2008 – 6:30 am | by admin |

Eric Schmidt was doing his level best late last week not to gloat. With Microsoft dropping its attempted takeover of Yahoo, the Google chief executive had just seen his arch-rival abandon its most direct attack yet on Google’s growing dominance of online search and advertising.

“I’m happy to be crowned winner,” Mr Schmidt said, before quickly adding: “But as we’ve learned in the election cycle, it goes back and forth.”

“The failure of the Microsoft/Yahoo merger eliminates the biggest short-term threat” to Google’s unrivalled position on the web, says David Yoffie, a professor at Harvard Business School. For now, its momentum “seems unstoppable”. Michael Cusumano, a management professor at Massachusetts Institute of Technology, describes Google’s now-unchallenged dominance even more bluntly: “They’re sitting on a goldmine.”

Is the Google, Microsoft, Yahoo Search War Settled?

Some commentators believe it’s over, for now. I’m inclined to agree, however, it’s just as likely to swing away as fast, unless Google keeps up the pressure. The market leader always has the biggest competition snapping at their heels.

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