It seems Yahoo and Microsoft have struck a deal to share revenue on ads to compete with Google. That’s all fine and dandy, but the real kicker is Microsoft’s search engine Bing will become the default instead of Yahoo’s. Its sad to see one of the earliest Internet companies lose the integral piece that made them famous, but it was even harder to see Yahoo turn into “altavista”. Yahoo has been in a state of flux, with the only constant being their decreased market share.
Yahoo is not being bought, but I believe this is the beginning of the end for the company. My predictions are as follows.
- Microsoft will eventually buyout Yahoo and their will be a merge of services.
- Yahoo and Microsoft services will become much more tightly integrated.
- Yahoo’s mobile application presence will be leveraged (iPhone and Blackberry Apps)
- Hotmail will get the boot
- Yahoo Chat will be replaced by Windows Live Chat (MSN)
Microsoft has much to gain from Yahoo, especially in “Street cred” and cross platform capabilities. Remember that Yahoo is not a Windows shop, so Microsoft will be gaining invaluable knowledge from the cross-pollination that will take place between the company’s employees. While Yahoo doesn’t innovate nearly as much as they used too, this deal has the potential to get their juices rolling again.
What do you guys think? If you were Yahoo or Microsoft?