Businessweek Archives

Bad Day for Bad Yahoo Search Results


(Updated with Hitwise numbers below)

Compete’s March numbers for search are in and things continue looking bad for Yahoo—and are looking surprisingly good for Microsoft. So, sorry, who is undervaluing whom?

Compete says search volume “exploded” in March, jumping 6%, the biggest month-over-month increase in since last July.

Though Google’s search queries rose 5%, the company lost 1/2 % of overall market share, it’s first decline in 9 months.

Microsoft though, saw a 28% increase and now holds 10.2% of the market.And Yahoo? Growth was essentially flat and the company has slid to less than 15% of the total market.

The company has been losing market share for seven months, so this refusal of Microsoft’s offer looks even worse today than it would have last week. At a certain point, when trends like this continue, Yahoo is essentially telling the market that it thinks it would be better to be bought by private equity and broken up into different assets than to be sold to Microsoft at this price.

Hitwise meantime, also released numbers of percentage of total searches that, of course, show different results. Though the outcome for Yahoo is the same.

Google rose month over month to 67.25% from 66.44%.

Yahoo dropped to 20.29% from 20.59%

Microsoft also dropped to 6.65% from 6.95%


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