Internet Business Daily

News today came of Microsoft offering Yahoo! Inc. $50 billion for the purchase. This would mean that Microsoft basically owns Yahoo. This move shows how scared Microsoft really is of Google. Microsoft has a fraction of the online advertising revenue that Google does, and they want some of that action.

Google has also been making a move into the online application market. They are setting up to be direct rivals of software like Microsoft Office, and the many other desktop applications that Microsoft controls. Microsoft is definitely feeling the pressure of Google, which is good because MS has had a strangle hold on software for about 15 years now. Google has already been moving into the application market with online software such as Google documents.

Google’s baby is still adsense/adwords. When Eric Schmidt (CEO of Google) was asked to describe Google in a few words, he didn’t say search engine first. The very first thing he said was advertising giant. Something like 80% of Google’s revenue comes from adsense and adwords, and allows them to offer all of the free services that they do today. Microsoft has a fraction of this revenue with their version of adwords, Microsoft Adcenter.

This potential merger is history in the making. Even if the merger went through, Yahoosoft (hehe) is probably still not even as powerful as Google. I do not like one company to have all the power, so I am going to sit back and enjoy the show as Microsoft and Yahoo try to compete with the new giant of IT.