Could a Yahoo Google Deal be on the Horizon?

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This week Yahoo’s new CEO started and it’s predicted that over coming months many changes could start to occur. Samuel Junghenn owner of Think Big Online in a recent interview discussed the likelihood of a Yahoo and Google alliance.

Microsoft’s Bing has seen steady growth in their search market share, partly aided by the deal with Yahoo. If Yahoo was to leave this deal and sign something similar with Google this would see Google solidify their position as the market leader.

This week Yahoo’s new CEO started and it’s predicted that over coming months many changes could start to occur. Samuel Junghenn owner of Think Big Online in a recent interview discussed the likelihood of a Yahoo and Google alliance.

It’s no secret that the financial results of the Yahoo Microsoft deal are significantly less than predicted. In fact Yahoo chief financial officer Tim Morse said there continues to be a gap between the expected revenue earned per search and what Yahoo hoped the deal would produce.

These poor results combined with the previous position of Yahoo’s new CEO has sparked industry wide rumors of a potential Yahoo and Google deal. Marissa Mayer, who is the new CEO of Yahoo, previously held a high level position in the Google products team.

While Yahoo was seeing a steady decline in their online businesses due to new Google Services Marissa was enjoying the fruits of positive growth. This potential new relationship between Google and Yahoo could have dramatic impacts on the search market.

“Microsoft’s Bing has seen steady growth in their search market share, partly aided by the deal with Yahoo. If Yahoo was to leave this deal and sign something similar with Google this would see Google solidify their position as the market leader,” says Samuel Junghenn owner of Think Big Online.

Samuel goes on to say “The competition that Bing has being providing to Google recently has been good for users, forcing both companies to be more innovative. A stronger market domination by Google would be bad for users and companies alike.”

While no decisions have been made yet, the pressure on Marissa Mayer will force her to evaluate all options to improve Yahoo’s ailing share price.

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Alisa Phanchalad