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1st July 2008 |  Written by Guy Levine

Yahoo would rather dance with Google than Live!

Unless you’ve been in a monastery you’ll already know that Microsoft recently tried to purchase all or part of Yahoo.  What you may not know that as soon as the deal was dead, with both companies announcing that actually hell would all but freeze over before that would happen, Yahoo announced a deal with both companies chief rival, Google to carry Google’s PPC platform, Adsense.  This news has been met by a mainly negative response from the industry with the average commentator alarmed at how Google may dominate the Search Market even more than it does now.

Both companies seem all set for this to go through and announced they would give US Governement watchdogs three months to go over the deal and approve it.  But what does this mean for us users?

If the deal does go ahead we will see something that rarely happens, that is two industry giants co-operating in a joint venture.  More than co-operating, they seem to be on a joint mission to all put extinguish Microsoft from the Search Market altogether.   In terms of developing their services we’ve seen much activity from all three major engines recently in terms of Adlabs, Analytics and ventures into the mobile phone market.

It will be fascinating to see how this plays out,  Yahoo has been much criticised by it’s shareholders, with Yahoo executives also dropping like flies, with one recent ex-Yahoo employee recently joining Russian search engine Yandex.  Ultimately it seems Yahoo are happy to play second fiddle to Google and top of both companies Christmas list is the wish for Live to all but disappear.

It also surprised me to learn recently that actually Google will soon overtake Microsoft in stature, given the dominance of Microsoft in the PC market, this says more about not only how Google dominates it’s prime market but also about how successful Google has been as it’s spread it’s wings into other fields.

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