February 1, 2008 11:58 AM PST

Chart: A Microsoft-Yahoo combo by the numbers

Chart: A Microsoft-Yahoo combo by the numbers
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Microsoft's bid for Yahoo would create one of the world's largest Web companies, when examined using several different metrics.

The target of the proposed acquisition, of course, is Google, which enjoys a healthy lead in the search market but trails the potential combination of Microsoft and Yahoo in several important categories. Here's a look at the tale of the tape.

Microsoft-Yahoo deal in digits
What does $45 billion mean to Microsoft?
$59.09 billion Combined fiscal 2007 revenue of Microsoft and Yahoo. Most of that revenue, of course, comes from Microsoft's twin strongholds of its Windows operating system and its Office productivity software suite. MSN, Microsoft's online efforts perhaps most akin to Yahoo and Google, did $2.4 billion in revenue for Microsoft's fiscal 2007, compared with Yahoo's $7 billion in revenue. Google's 2007 fiscal revenue was $16.59 billion.
1.2 billion Combined unique monthly visitors to Microsoft and Yahoo's Web sites worldwide, according to December stats from ComScore. Google is the current leader in monthly unique visitors, while Microsoft and Yahoo are second and third, respectively. The combination of Microsoft and Yahoo's wide variety of sites would theoretically make it the first billion-user Web property, though a lot of people who currently visit both sites would get lumped into the overall figure. Google's unique visitors in December totaled 588 million.
31.5 Combined U.S. search market share percentage for Microsoft and Yahoo. With 56.3 percent of the search market, according to December figures from Nielsen, Google would still have a very healthy lead in search queries, which comprise the launching pad for everything else that these Web properties are trying to accomplish.
83.1 million Combined U.S. e-mail market share for Microsoft and Yahoo as of September, according to Nielsen. They would have a huge advantage over Google here, as both companies have been providing free Web e-mail for years, before Google got into the game with Gmail (which has about 13.6 million users). Yahoo is currently far and away the e-mail leader, with 55.5 million unique users, and AOL is still very much in this game, with almost 30 million unique users.
47 million Combined unique U.S. instant-messaging service users for Microsoft and Yahoo, according to September figures from Nielsen. Again, no contest here. AOL is the market leader, with AIM and 39.8 million unique users, but a Microsoft-Yahoo blend would surpass AIM with room to spare. With just 2 million users, Google Talk is barely on the instant-messaging map, trailing the Big Three, as well as Meebo and Skype.
15.6 Combined percentage of U.S. Internet visits for Microsoft and Yahoo, as of January 26, according to Hitwise. Page views might be on the out as the end-all, be-all metric of Web properties, but they still count for something. And a combined Microsoft-Yahoo company would generate more than double the page views of Google's current operations, which grab 7.7 percent of U.S. Web page visits.
Sources: ComScore, Nielsen, Hitwise, company records

See more CNET content tagged:
Yahoo! Inc., ComScore, Google Inc., visitor, leader

12 comments

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How about international?
What's the point of discussing U.S. only share? Google, Yahoo and Microsoft serve international audiences and derive revenues and profits globally. How about providing total worldwide numbers?
Posted by ancre007 (25 comments )
Reply Link Flag
Stats hard to come by
The companies that track this sort of thing, the Comscores and Nielsens, tend to only report U.S. numbers. We had a very difficult time tracking down worldwide numbers for anything but that one metric reported in the chart.

You're right, of course, it's silly to ignore all those other places. But we've got to report hard numbers, and U.S. numbers are what those companies report.
Posted by Tom Krazit (436 comments )
Link Flag
How about international?
What's the point of discussing U.S. only share? Google, Yahoo and Microsoft serve international audiences and derive revenues and profits globally. How about providing total worldwide numbers?
Posted by ancre007 (25 comments )
Reply Link Flag
Stats hard to come by
The companies that track this sort of thing, the Comscores and Nielsens, tend to only report U.S. numbers. We had a very difficult time tracking down worldwide numbers for anything but that one metric reported in the chart.

You're right, of course, it's silly to ignore all those other places. But we've got to report hard numbers, and U.S. numbers are what those companies report.
Posted by Tom Krazit (436 comments )
Link Flag
What a combo!
So, we will be seeing a new search engine soon with a very cool name: MICROHOO! Ho, ho, ho! Is it X'mas yet?
Posted by kulotzky (2 comments )
Reply Link Flag
What a combo!
So, we will be seeing a new search engine soon with a very cool name: MICROHOO! Ho, ho, ho! Is it X'mas yet?
Posted by kulotzky (2 comments )
Reply Link Flag
Still sucks
Even if this deal closes, Microsoft will still suck and Yahoo, who charges for services that Google offers for free, will charge even more. Fortunately, the only items I'll lose by leaving Yahoo are Yahoo News, Yahoo IM and Yahoo Music. Oh well.
Posted by TBolt (70 comments )
Reply Link Flag
Still sucks
Even if this deal closes, Microsoft will still suck and Yahoo, who charges for services that Google offers for free, will charge even more. Fortunately, the only items I'll lose by leaving Yahoo are Yahoo News, Yahoo IM and Yahoo Music. Oh well.
Posted by TBolt (70 comments )
Reply Link Flag
This chart is full of errors
Has anybody explained to whomever created this chart the notion of unique visitors and duplication? You cannot simply add unique users of Yahoo and MSN to get to a total combined number, because there's a tremendous amount of overlap where Yahoo users also go to MSN, and visa versa. The combined unique visitors of two sites will be more like 600MM uniques, not 1.2B!! There are 1.2B people online in the entire world.... Same applies for your cals of mail/IM combination. Also, in order to compare apples to apples, you need to count Yahoo and Google total revenue excluding partner commissions, so the revenue numbers are $5.1B and $11.7B, respectively. (Not $7B and $17B).
Whoever created the chart doesn't understand these companies' business or online market metrics....
Posted by klimenkop (2 comments )
Reply Link Flag
Not to mention...
Yahoo!'s and Microsoft's Instant Messaging clients are already pretty much interoperable.
Posted by TV James (680 comments )
Link Flag
This chart is full of errors
Has anybody explained to whomever created this chart the notion of unique visitors and duplication? You cannot simply add unique users of Yahoo and MSN to get to a total combined number, because there's a tremendous amount of overlap where Yahoo users also go to MSN, and visa versa. The combined unique visitors of two sites will be more like 600MM uniques, not 1.2B!! There are 1.2B people online in the entire world.... Same applies for your cals of mail/IM combination. Also, in order to compare apples to apples, you need to count Yahoo and Google total revenue excluding partner commissions, so the revenue numbers are $5.1B and $11.7B, respectively. (Not $7B and $17B).
Whoever created the chart doesn't understand these companies' business or online market metrics....
Posted by klimenkop (2 comments )
Reply Link Flag
Not to mention...
Yahoo!'s and Microsoft's Instant Messaging clients are already pretty much interoperable.
Posted by TV James (680 comments )
Link Flag
 

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