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Yahoo's Woes In Search Engine Share Continues As Microsoft Gains

 February 09, 2012 11:17 PM

Internet company Yahoo!'s (YHOO) woes continues in the core search engine share in January. The company extended its losing streak by witnessing 40 basis points drop in its explicit core search engine share, which has been shared between market leader Google (GOOG) and Microsoft (MSFT).

Yahoo!'s share in explicit core search engine has come down to 14.1 percent in January from 14.5 percent in December. Google, on the other hand, extended its gains by another 30 basis points to settle at 66.2 percent than 65.9 percent in December. While Google gaining is not a surprise, Microsoft extending its gains by another 10 basis points to 15.2 percent from 15.1 in December assumes significance. Strangely, Ask Network too advanced 10 basis points to 3.0 percent from 2.9 percent, but Yahoo! has not only failed to extend, but has been steadily losing its share.

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In the core search engine segment, Yahoo! sites managed to retain its number two slot despite losing 20 basis points to 16.0 percent from 16.2 percent in December. However, Google extended its share by another 10 basis points to close at 66.2 percent from 66.1 percent in December.

Microsoft and Ask Network and AOL maintained their share of 13.8 percent, 2.6 percent and 1.4 percent respectively in January.

The new CEO of Yahoo! is going to have tough times to not only arrest the falling share, but also increase the revenue base to stayput in the market. There was an expectation that the leaving of Jerry Yang, co-founder of Yahoo!, would allow the new CEO Scott Thomson the much needed freedom to take some bold decisions. But since more than three weeks had passed, no concrete decision seems to have been taken on the question of divesting its interest in Asian business, especially its stake in Alibaba and Yahoo Japan.



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