Google, Microsoft Spar Over Yahoo!
February 4, 2008 at 11:26 AM (PT)
In a confidential e-mail to employees, YAHOO! CEO JERRY YANG tampered rumors that MICROSOFT's $44.6 billion unfriendly bid was a done deal; rather he asserted that the offer was "one of many options that we're evaluating." According to SILICONVALLEY.COM, which reported on the e-mail, one of those options is reportedly a business arrangement with GOOGLE.
For its part, GOOGLE publicly complained about MICROSOFT's move on SUNDAY. GOOGLE Chief Lawyer DAVID DRUMMOND intimated that such a deal would represent "inappropriate and illegal influence over the Internet that (MICROSOFT) did with the PC ... This is about more than simply a financial transaction," he wrote on the official Google Blog. "It's about preserving the underlying principles of the Internet: openness and innovation."
As if this is all going down in a courtroom, MICROSOFT lawyer, BRAD SMITH objected to GOOGLE's characterization. "The combination of MICROSOFT and YAHOO! will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising," he said. "The alternative scenarios only lead to less competition on the Internet."
According to comScore, 58% of all Internet searches in the U.S. are through GOOGLE, while YAHOO! and MICROSOFT combined comprise 33% of all searches.