Prepare for 3-way battle as Yahoo shuns Microsoft

Now that Yahoo CEO Terry Semel has put paid to the rumours that Microsoft was looking to acquire its search business, three things are clear. One is that Microsoft felt a need to ramp up its search business fast. Secondly, the next couple of years are going to bear witness to a three-way battle royale for internet dominance. Thirdly, Google has Microsoft scared to death.

Depending on whose figures you believe, Microsoft has about 13% of the search market, compared to Yahoo's 28% and Google with about 43%. Some pundits point to the fact that Microsoft has come from behind in the past to overtake and displace more established rivals. However, Google is not like the other rivals that Microsoft has encountered. It is very profitable; it is growing at a great rate; it well funded with deep pockets; and it has proven itself to be highly a innovative web player. It is not a case of Google defending its space against Microsoft but in fact the reverse.

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