A search engine optimization firms take on the potential $44.6 billion dollar Yahoo acquisition by Microsoft.

In my opinion the acquisition all boils down to Microsoft’s inability to challenge Google mainly in Search and secondarily in web application innovation.  Google currently owns 58% of Search industry which is expected to surpass $23 Billion in spending by 2010.  As Microsoft’s 10% market share continues to dwindle, they are even increasingly being shut out of the fast growing and lucrative Search market.  Hence, the Yahoo acquisition would boost their Search market share to over 30% of Search and give Microsoft a legitimate shot at taking on Google, giving both Microsoft and Yahoo engineers a common enemy.  Overall we would be happy to see a legitimate challenger to Google and their near monopoly in the Search marketplace and think that consumers and searchers would benefit from the acquisition.  Microsoft AdCenter and Yahoo Search Marketing PPC could use an overhaul too, so here is hoping their combined Ad Systems streamline the process of setting up PPC ads on both of their networks.

In addition to taking Google on in Search the combined company would control a vast amount of web traffic. 
Here are the most popular affected websites in the US:
1.) Yahoo
2.) Google
4.) Windows Live
5.) Microsoft Network (MSN)
This is very significant, and controlling 3 of the top 5 most popular destinations on the Internet in the US will allow Microsoft to continue to build up strategic Internet marketing alliances.  Building on momentum of recent deals with Facebook and Digg.

Many challenges remain and new bidders for Yahoo might emerge, but in my estimation Microsoft is the best suitor and we expect the deal to be completed.  The combined company would have many cultural obstacles and technical (Microsoft shuns Open Source vs. Yahoo has embraced it) but the combined companies would clearly provide a challenge to Google.

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