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Google helps Competitor to help itself

May 7th, 2008 by Administrator
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This is an explanation not only of what made Microsoft deal for Yahoo difficult, but how you may use strategy to help a competitor.

As they say - the enemy of your enemy can be your friend.

How Google’s Checkbook Stymied Microsoft - New York Times Blog

Shortly after Microsoft announced its hostile bid for Yahoo, Google objected and raised the prospect that it would lobby government regulators to block any merger.

As it turned out, Google was very much the spoiler in the deal. But its most effective weapon was not threats or coercion, but its very effective, and unconventional, use of its own checkbook.

Google has agreed to sell some search advertising for Yahoo. And since Google earns far more on every search than its rivals do, this will mean an immediate increase in Yahoo’s profits.

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Posted in FrontPage, On Technology |

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