Should Google’s Competitors Merge?

Economist.com has written a pretty interesting article comparing Google to Napoleon. Microsoft, Yahoo!, and eBay, are a lot like Russia, Prussia, and Austria. Some say a merger between two of the smaller powers would help prevent Google from gaining more search market share. Others say it would simply expedite the smaller companies’ decline.

I don’t think a merger between Yahoo! and Microsoft would be too helpful. Yahoo! is an Internet portal; Microsoft has an Internet portal. Thus, Microsoft offers a much broader scope of products and services, and the two companies overlap on every service common to Internet portals: email, chat, news, music, search, etc. It seems that the best strategy between Yahoo! and Microsoft is to partner together. They’ve already announced plans to integrate their chat clients. Deals like these are in both companies’ best interest. The problem is, these small partnerships have minimal impact on Google.

Although I don’t think a merger between Yahoo! and Microsoft would help either company very much, I do think either company would benefit from a merger with eBay. There would be no overlapping of services. A merger of that size would be so huge though, it seems that nothing like that will happen until drastic measures essentially require it to happen. Maybe these drastic measures will be realized when Google hits 90% market share for search. Only time will tell.

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