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February 3, 2008 3:02 PM PST

Microsoft lashes back at Google

by Ina Fried
UPDATED: 6 p.m.

Nu-uhhh.

That's a one word summary of Microsoft's statement Sunday rebutting Google's statement earlier in the day that said Microsoft's $44.6 billion bid for Yahoo could raise antitrust concerns.

"The combination of Microsoft and Yahoo will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising," Microsoft lawyer Brad Smith said in a statement. "The alternative scenarios only lead to less competition on the Internet."

Smith argues that Google already has three-quarters of the paid search market and about two-thirds of U.S. search queries and 85 percent in Europe.

Meanwhile, Reuters is reporting that Yahoo is considering some type of tie-up with Google, potentially something smaller than an all-out acquisition. Google Chief Executive Eric Schmidt phoned Yahoo Chief Executive Jerry Yang on Friday to discuss how to avoid a Microsoft takeover, either by offering money or guaranteed revenue in exchange for Yahoo outsourcing its advertising to Google, according to a report in The Wall Street Journal. A Google spokesman said the company had no comment on the report, and Yahoo representatives could not be reached for comment.

Originally posted at Beyond Binary
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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Apples and Oranges...
by lmasanti February 3, 2008 4:19 PM PST
Google is the clear winner in the search arena.
But Microsoft+Yahoo! will be the clear winner in the email+IM
arena.

So, all reduces to "know" (decipher) which one is the "future of
ad revenues"!
Reply to this comment
Yahoo! + MSFT = Empty Company in 6 Months
by Sumatra-Bosch February 3, 2008 4:59 PM PST
No one really appreciates the raw revulsion that the rank and file at Yahoo! have for MSFT. Google/Gmail + Yahoo!/Yahoo! IM = Who cares about MSN anymore. Customers are already leaving on the news.
Reply to this comment
I care
by Gunady February 3, 2008 6:34 PM PST
Although I can add Windows Live Messenger contacts to Yahoo, but I already have a lot of contacts in Live Messenger. And, I found, current Live Messenger offers considerably more features than other messenger, like custom emoticon. Google Talk is simple and good. I use Google Talk to my main contacts, second is Windows Live to my colleague/general friends, and Yahoo only to the rest. So, yes, I care about Windows Live Messenger, aka, MSN.
View reply
Microsoft Will Set Internet Back 5 Years
by microsoft slayer February 3, 2008 6:19 PM PST
If they ever get a hold and dissolve Yahoo! Don't do it Yahoo! If you're going to sell out, atleast ask for $100/shr!
Reply to this comment
It may come to that...
by Penguinisto February 3, 2008 7:56 PM PST
MSFT paying $100 per share, that is.

If Yahoo is smart, they'll play coy, and when MSFT movews in for the kill, drop in a poison pill just to watch Ballmer turn red >:)

/P
Microsoft was found guilty of being a monopoly.
by ServedUp February 3, 2008 7:23 PM PST
Least we forget, that Microsoft was found guilty in 2000, of violating the Sherman act and were ordered to be split in two; functioning separately as two different companies, during the first antitrust trial. Although the judge (Thomas Penfield Jackson) at the time was considered to be guilty of being bias, guilty or not guilty, it's still quite a serious charge to have been implicated in, and there's no denying they did it. They just found a loop hole,got a new trial, a new judge (Colleen Kollar Kotelly), and a more palatable punishment. But even then that didn't stop them from undermining their fine. As they were also looking for ways of paying it off, with free software instead of providing the choice that currency provides, until someone pointed this out (Steve Jobs) it was another unfair practice of leveraging their monopoly by having them give Microsoft software instead of the latter.

http://archive.salon.com/tech/feature/2000/04/03/microsoft_ruling/index.html

So lets stop denying they are a Monopoly and focus on why its a bad merger.

Google in the highest degree isn't worried about the merger between these two companies. But it is worried about the monopoly Microsoft already has in computer operating systems and the browser market. And rightfully so, Microsoft is a company that runs 90% of the world's computer. They also dominate the browser space at 75% of the world market. Couple this with the fact they plan on creating web development tools for the internet as a whole surely that can pose somewhat of a serious threat. No? Surely this will be a cause for concern to Google, if not Adobe. Right? With a company that dominates almost every category in software for the PC. The question we have to answer here is ? why wouldn't they use this to their advantage? Certainly there are some serious consequential issues here for the law books, as laws are still being written for this kind of violation.

But on their own, Yahoo & Microsoft already provide a competitive atmosphere to Google as separate companies. Why change this? Microsoft just doesn't own as much as they'd like, paralleled to that of a spoiled child. There really is no need for them to merge if only for greedy purposes ? that could likely prove damaging to the market. I for one have no trouble sleeping at night that I don't see a Microsoft search bar or service dominating my every internet move. Its best left to those who've pioneered this technology and not to those who've just bought it.
Reply to this comment
Every One Loves A Winner!
by Commander_Spock February 3, 2008 8:33 PM PST
"The combination of Microsoft and Yahoo will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising," Microsoft lawyer Brad Smith said in a statement. "The alternative scenarios only lead to less competition on the Internet..." Got to remember always folks - Code-Base OS/2 (Windows) will always be Code-Base OS/2 (Windows); and, from the NEW YORK GIANTS' CORNER it will be fun to see how this ACHILLES (Microsoft + Yahoo) vs Hercules (Google (Google) for the SOUL OF THE INTERNET plays out. Do ya think that this battle is going to make the "U.S. Housing Woes" go away - Think Google Docs! Think Microsoft Office Live! Where in the world is IBM, the Mortgage Banks et al? - "It Is (Always Going To Be) The Economy Stupid".
Reply to this comment
How ironic
by fleurya February 3, 2008 8:55 PM PST
Google claims MS could make a monopoly out of the internet, but
how could they when Google already owns most of the internet
searching and advertising??

So instead, Google wants to make it's own moves to all but take
over Yahoo, thereby guaranteeing a monopoly!!

Either way, I think I'm going to buy some Yahoo stock tomorrow!
Reply to this comment
Regarding Microsoft's Bids to Buy Yahoo
by krosavcheg February 3, 2008 9:06 PM PST
Regarding Microsoft's Bids to Buy Yahoo, Microsoft CEO Steve Ballmer is presently under the influence of Neptune "negative" Jupiter. This influence governs the unrealistic, impractical, and shows no workable plan for success, the influence is purely emotional. This influence also shows a disregard for morals, ethics and values, which reflects the "take over" tactics of Microsoft as Yahoo begins layoffs and restructuring within. The chart of Steve Ballmer indicates that he is making a "big" mistake in timing and planning that will harm Microsoft.
Reply to this comment
Microsoft/Yahoo merger is bad for consumer choice on the Internet!
by JuggerNaut February 3, 2008 9:56 PM PST
Taking choice away from consumers is a bad thing. Having
more choice is always a good thing. And with Microsoft
aggressively wanting to take over Yahoo smells like trouble if
you ask me. You cannot let Microsoft illegally take over the
Internet like they did the PC desktop with their anticompetitive
strategies.

Google is number one because they got there fair and square,
Microsoft on the other hand...

http://www.birdhouse.org/beos/byte/30-bootloader/
Reply to this comment
What's the big deal?
by DemePoole February 4, 2008 1:51 AM PST
I think it's funny how some people seem to launch into virtual conspiracy theories at the mere mention of Microsoft.
For those of us who live in the US, which part of capitalistic society don't you understand? How could any American seriously have a problem with MS wanting more, more, more? Who can name one business that doesn't want the same thing? Who can name ONE person who doesn't want MORE? Even so-called charities, such as Good Will, want more, more, more!
It is always going to be the consumer that loses out in the corporate world, because, no matter what they say, money will always come first! If I owned stock in a company, I would want that company to make as much money as it can, because, as a result, I would get more money.
Some people don't seem to realize that these companies are run by more than just one person. These companies are handled by people who want MORE money! I don't see how hard this is to figure out.
45 billion dollars is nothing to sneeze at and if anyone says they wouldn't take it, consider it, etc, that person is just a liar or a person who is allergic to money. Most people can't even imagine what that much money looks like.
Someone mentioned Adobe, but didn't they take over Macromedia? Didn't they get rid of the Macromedia brand and make it their own?
Heck, maybe I like the word Macromedia better than Adobe. Why couldn't they leave the name alone? Because, it is not about what we want. It is about what these companies pretty much force on us, but that is my opinion.
I have never felt bullied by any company to use their product. There are always alternatives. People will always choose what is "easy", especially in America.
Companies will always want more money and more control and more everything. Big Whoop! Tell us something we don't know.
Just remember that these companies are controlled by PEOPLE who are greedy and only see green. If you vilify one company, vilify them ALL, because ALL of them want the same thing, Google included.

By the way, this is my opinion so there is no need to turn on the flame throwers. If you disagree that business is about anything other than money, let me know. :-)
Reply to this comment
you're right
by diamondsmama February 4, 2008 4:45 AM PST
you can also use that in context of gas prices and oil investors having trillions of dollars and wanting more .
View reply
No exceptions
by DemePoole February 4, 2008 7:04 PM PST
Yes, I was referring to all business. They all want the same thing: To be number one and to suck us dry and, usually, leave us, the consumers, high and dry.
ms and yahoo .. better search engine?
by diamondsmama February 4, 2008 4:42 AM PST
Not . when it comes to searching , google gets it , hands down . yahoo takes you anywhere but to the relevant pages you are looking for google can narrow a search far better than yahoo , without all the confusion .
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