Yahoo Share to Likely Shrink in 2009

By  |  Thursday, April 9, 2009 at 9:18 am

YahooDefinitely not good news for the world’s second biggest search provider. Yahoo is set to lose a chunk of market share over the next year or so, experts say.

This is due to the loss of two toolbar partners: HP, who signed up with Microsoft’s Live Search toolbar early last year; and Acer who silently switched its search provider to Google in October.

That failure could cost the search company about 15 percent of its market share, or about 3 percent in the overall rankings. While the company does admit that the termination of the deals will cause its share to shrink, it told the Wall Street Journal its own internal study showed less of a negative effect.

Losses wouldn’t be realized right away: instead, Yahoo’s share would likely shrink slowly as consumers replace their aging machines. The search provider could even be helped out by the deep recession in the meantime, which has slowed the replacement cycle even more.

Shrinking share could also have another effect: driving Yahoo’s search business into Microsoft’s open arms.  It’s becoming ever more clear that if Yahoo and Microsoft really want to compete with Google, they are going to have to join forces.

 
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1 Comments For This Post

  1. Tom B Says:

    “Shrinking share could also have another effect: driving Yahoo’s search business into Microsoft’s open arms.”

    Umm–no–logical error here. The share will go to Google– you know– the search engine that returns useful results.

    I just wish Yahoo would stop messing with its services. Last week, I logged into my E-mail, and they had this nasty “search for mobile phones I can E-mail to” thing going on that sucked up all my CPU cycles. Their spam filter is HORRIBLE– too much stuff gets thrown there, and, sometimes a DAY LATE. I had that happen to an important E-mail this week. I was so disgusted, I just decided to turn the filter off. Of course, all the phony “we need your bank of America account numbers for verification” phishing stuff gets through. And the server performance has been bad– come back LATER for your E-mail.

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