Why Google fears the Microsoft deal

Lisa Napoli Feb 8, 2008
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Why Google fears the Microsoft deal

Lisa Napoli Feb 8, 2008
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TEXT OF STORY

Scott Jagow: It’s hard to explain why Congress moves as slow as a wet weekend on some things, but it jumps to it on others. It’s only been a few days since Microsoft made its hostile bid for Yahoo. But today on Capitol Hill, there’s an anti-trust hearing about it. More now from Lisa Napoli.


Lisa Napoli: Just about a year ago, Microsoft was crying foul over Google’s bid to buy online ad giant Doubleclick. Microsoft said it would give too much power to Google.

But now, that’s a done deal, and Google’s the one complaining about Microsoft’s power. Google’s worried that Microsoft, with its desktop chokehold, could make Yahoo the dominant search engine.

Ken Wilbur: Google would rather have a weak sister in the industry than a consolidated Yahoo and Microsoft.

That’s marketing professor Ken Wilbur of the University of Southern California. He says a combined Microsoft and Yahoo could end up driving down the cost of online advertising.

Wilbur: And if you allow the second and third players to get together, since they are such distant second and third players, they might provide effective competition for the market leader — Google in this case.

Not like Google will buy that any time soon — they’re poised for a fight.

In Los Angeles, I’m Lisa Napoli for Marketplace.

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