Overseas search execs say microsoft should look beyond yahoo

"Microsoft could be doing far good things with $40 one million million dollars," said Andy Atkins-Kruger, managing manager of international search selling firm Web-Certain, speaking with ClickZ News last week. Microsoft made a $44.6 one million million bid for Yahoo before this month, which Yahoo's board rejected. Since then, Microsoft has threatened a Yahoo Board coup.

"hunt is global," he continued. "Microsoft should be look to expand its presence outside of the U.S., alternatively of paying over the odds for a company that will have comparatively little consequence on its global presence."

attendant at the hunt Engine scheme event in Greater London last week expressed excitement at the prospect of a more competitive search landscape as a consequence of the proposed acquisition. Nevertheless, they are concerned a Yahoo coup d'etat may be the wrong way for Microsoft to go about goad competition and taming Google's laterality.

In Dec 2007, Google's U.S. Hunt audience share stood at 58 percentage, ComScore study. Yahoo ranked second with 23 percentage, followed by Microsoft at just under 10 percentage. Although a Yahoo purchase would strengthen Microsoft's hunt offering in the U.S., marketers suggest it is unlikely to cause any major waves exterior it.

"I don't think Microsoft would see [$44.6 one million million] worth of tax return on this investing," said Atkins-Kruger.

Other hunt professionals were skeptical as to whether a Microsoft/Yahoo combo would be capable of feeding into Google's U.S. Laterality, and also voiced concerns that a failed challenge in the U.S. Marketplace could consequence in a complete Google whitewash.

According to ComScore, Internet users exterior the U.S. Now business relationship for over 80 percentage of the world's online population. If Microsoft is truly hoping to challenge Google in hunt, therefore, perhaps it would do well to look at firms based in international markets in which Google does not already have such a strong foothold.

Atkins-Kruger cited potentially more lucrative targets, such as Yandex and Baidu, the dominant search players in the Eastern European and Chinese markets, respectively. ComScore reports that between January 2006 and January 2007, Internet penetration in China and The Russian Federation rose by at least 20 percent year-over-year compared with a 10 percent increase in the U.S.

Google acquired a minority stake in Baidu in 2004, and later unloaded the stock in '06.

Andreas Pouros, managing director at SEM firm Greenlight, acknowledged that Microsoft may find more solid search investments outside of the U.S., but suggested the proposed purchase is perhaps more tactical than a simple attempt to gain audience share.

"It would make more sense for Microsoft to pursue less Google-dominant markets," he said. "But at the same time, it can't just allow Google to run away with things in the U.S."

"I think this bid is largely about hindering Google," he continued. "Microsoft may just be looking for any way it can stay in the game."

Microsoft still appears to be dead set on winning Yahoo. The software giant hired a proxy solicitation specialist recently, following its promise to "pursue all necessary steps" to secure a deal. If Microsoft does plan to launch a proxy battle, it now has until March 13 to nominate a new board of directors ahead of Yahoo's annual meeting in June.