Microsoft tout for Yahoo!. One of the biggest acquisitions in the internet chronicles looms. Naturally there are many speculations and in the spotlight what associate both companies and what are their chances to compete Google. Additional there leaves a question about the destination of the brand Yahoo and what will remain of it after that the internet company merged with the software giant. Probably not much.

Primarily the industry pays much attention for the similarities of the two companies to analyze where enormous market potential may be tapped. The Comscore statistics of December 2007 showed that Microsoft and Yahoo combined had 665 millions users worldwide, compared with Google 558 millions users at Google. Indeed in the search engine market Google was ahead by a nose with 62.4% market share in comparison with the opponents Microsoft and Yahoo (combined 15.7%). It seems very unlikely that Google can be challenged for the search engine market in the next years.

So what is the indication for an alliance in the search engine market however? Microsoft and Yahoo have far reaching user data being for accurate advertising. But currently this segment is weakening slightly, too. Actually the advertising revenues are yielding slower than the branch of industry had hoped. It’s evident that Microsoft want to cut the ground from under Google’s feet and to establish competition.

Many market observers believe that the union of Microsoft and Yahoo serves for strengthening the guiding role of both in the business of email and instant messaging. Ok, that is interesting - but not really of importance.

What about the bright thriving mobile market in several analyses? This is a market with enormous growth in sight whereas other segments are nearly saturated.

After Google have declared war with the mobile standard operating system against Microsoft it is most likely that this market is of major importance for the software giant. But how shall Microsoft put up some resistance with Yahoo in the same boat against Android? The operating system Windows Mobile is compatible with Pocket PC, PDA and Smartphone market. While Yahoo Go as mobile internet services is an equivalent of the big brother in web. Perhaps the common mobile user can make a choice of operating systems soon, similar to the PC market.

However, one decisive factor will be honoring Google as winner: As first mover Google gains market shares in the young mobile segment, whereas Microsoft loses time. The software colossus seems to establish a worthy competitor in as many segments as possible.

Meanwhile Yahoo becomes a pawn in the handy of the powerful and fades into the background in view of dominance. No combination whether Microsoft nor Google seems to be a great advantage for Yahoo. But the internet company has to make a decision because alone it has no chances of success. A real pity for Yahoo!