In the eventuality of a Microsoft and Yahoo merger

Feb 15, 2008 09:21 GMT  ·  By

Windows Live Messenger 9.0 and Yahoo Messenger for Windows Vista are set to rule the instant messaging world in the eventuality of a successful Microsoft acquisition of Yahoo. Without a doubt, Microsoft plus Yahoo would create a valid competitor for Google on the search engine and online advertising markets. At the beginning of February, the Redmond company indicated that it is ready to pay no less than $44.6 billion for the Sunnyvale Internet giant, and that a negative response will not deter it from its course of action.

But at the same time, the Yahoo and Microsoft marriage would result in a single powerhouse and a monopoly on the web-based email and instant messaging markets. "Microsoft plus Yahoo! equals an overwhelming share of instant messaging and web email accounts. And between them, the two companies operate the two most heavily trafficked portals on the Internet. Could a combination of the two take advantage of a PC software monopoly to unfairly limit the ability of consumers to freely access competitors' email, IM, and web-based services?" asked David Drummond, Google Senior Vice President, Corporate Development and Chief Legal Officer.

The statistics made available by Internet metrics company comScore for the month of December 2007, courtesy of LiveSide, paint a clear picture of the immense advantage in audience that a combination between Microsoft and Yahoo would have over Google. The next versions of the instant messaging clients from the Redmond and Sunnyvale companies, namely Windows Live Messenger 9.0 and Yahoo Messenger for Windows Vista, along with the general purpose Yahoo Messenger would simply choke the IM market, and not leave Google any place to breathe. Just in the U.S., Microsoft and Yahoo control a combined 41+ million instant messaging audience.

On the U.S. IM client market, Google is nothing short of insignificant with just over half a million Google Talk users. But this situation is illustrative of the global status of Google Talk, an IM client lagging at a far distance behind Windows Live Messenger and Yahoo Messenger. On the web-based email market Gmail has managed to gather up a crowd of over 20 million just in the U.S. But also only in the U.S., Microsoft and Yahoo together own an audience of over 100 million users with over 80 million for the Sunnyvale Internet giant and 45 million for the Redmond company.

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