Definitely 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.