Our comments and trackback policy You Link We Follow, You Comment We Promote
We have been hearing about Yahoo’s attempts at AOL merger and according to reports the deal (that might rescue troubled Yahoo) may very well turn out by within this month. The deal focuses at Yahoo acquiring AOL’s content and advertising, leaving the subscription dial-up business for AOL alone.
The combined platform will help Yahoo generate more revenue from the AOL assets that at present lurk at $2.4 billion a year. However there are certain factors that go against the deal and the Yahoo/AOL merger.
The major issue of concern here is that the combined duo would dominate the the mail services around the globe, with control over 48% of email accounts globally (Microsoft would be number two with 42%) and the instant messaging shooting up to 39% market share. This turns out to make Yahoo the dominant force in the messaging/mail market and with Google dominating the search, I wonder what Microsoft will have to boast about in the online business? However with such dominance, I wonder if the Department of Justice would let this one have a green light, given the issues they have regarding the Yahoo/Google deal to be bad for competition.
The other reason why it may signal trouble is a possibility of Microsoft acquiring the Yahoo/AOL merger. The question here is this; will the current merger with AOL help Yahoo or is it going to bring it down further? What I see from here is probably a short term financial loss but on longer terms it may very well bring out the best for Yahoo.
