Yahoo Inc., the California based internet company, has registered a drop in its US search share which is very much likely to affect the benefits of its deal with Microsoft early next year.
In November, while Microsoft gained a 10.3 percent share in the US search engine market, Yahoo search share fell to 17.5 percent. The numbers stood at 8 percent and 20.1 percent respectively in the month of May according to comScore data.
Yahoo, the company best known for its email and search engine services, has blamed the recent decline in the US search engine market on the fallout of its toolbar deals with Hewlett Packard and Acer.
Several expert analysts believe that the current trend in the decline of market share is poising to be a long term one and they have warned that Yahoo market share could slip as low as 10 percent in a few years, with Microsoft's Bing likely to be the big winner
Recently, Microsoft and Yahoo had agreed on a deal to share search engine technology which will involve Yahoo web searches to be powered by Microsoft Bing.
With this deal, Yahoo will look to cut costs significantly and focus on its advertisement business whereas Microsoft will look to gain some clout in order to take on Google.
However, in order to reap maximum benefits from this deal with Microsoft, Yahoo would really need to step up its game and somehow manage to stem its market share losses.
Is Yahoo on the way to become the next Altavista? Hopefully not, the search engine sector cannot become like the graphics card or microprocessor one or we will face two incredibly large private companies that will control access to global knowledge.