Yahoo And Google To Ally Against Microsoft, The Next Great Search War Begins?

Although still unconfirmed, a source close to Yahoo has said that the company would consider an alliance with Google inc - as a way to rebuff an offer from Microsoft, which offered $44.6 billion dollars.

If talks were to be opened, and the ‘Yoogle’ or ‘Gahoo’ alliance was formed - what would this mean? Eventually, once the two companies had established trust and a good flow of communication, I think that technologies and solutions would start emerging from the two that melded services already provided by the two.

As for search, which is arguably the most important asset to both businesses as their core foundation, I would think that it would be reically unlikely for the two to share search technology, information, or methods. Whilst Yahoo may be willing for this, Google is highly secretive of it’s search technology - Google even assembles it’s own computers behind closed doors from ordered parts.

More info, plus a breakdown and forecast after the jump >

Ultimately, whilst this ‘Yoogle’ (I think I prefer Yoogle over Gahoo) alliance would spawn some interesting technologies, this would lead to a joint attack on Microsoft’s search areas, Windows Live Search, and MSN Search. To put that into perspective, that’s Yoogle’s 89.34% search engine market share, against Microsoft’s combined 6.02 - that spells bad news for Microsoft in the search arena.

So will Yahoo take Microsoft’s $44.6 billion offer? I have to say, it’s doubtful. I think that an alliance between Google and Yahoo is far more likely, but we’ll just have to see how this goes.

I’d really like to hear what you think of this, does this spell the end to Microsoft’s search efforts, or will Yahoo take Microsoft’s side in the next great search war?

Graham