If Barry Diller is looking for somewhere to unload IAC’s Ask.com search engine, he’d be wise to consider Microsoft–if he doesn’t have that in mind already. Analysts reflecting on Diller’s recent remarks about Ask’s “speculative future” say Microsoft is the most likely buyer if IAC is truly serious about dumping the little search engine that couldn’t.
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Much has changed at Yahoo since May 17, 2006, the last time the company held an investor day gathering. In May 2006, Yahoo’s shares traded at about $30 and the company claimed 28.98 percent of the U.S. search market. Today, its stock is worth a little over $16 and its share of the search market has fallen to 18.8 percent. Ugly declines, both of them. Fitting then, that Yahoo CEO Carol Bartz, speaking at the company’s first investor day gathering in three-and-a-half years, would describe Yahoo’s future as “a journey back to respect.”
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Well, there it is. Barry Diller would rather sell off IAC’s Ask.com search engine than brave a fiercely competitive market with a property whose future he describes as “speculative.”
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Microsoft’s efforts to bolster Bing’s market share are no longer paying off as well as they have been. After months of slight but steady increases in market share, Bing’s percentage of the search market in the U.S. and abroad fell in September for the first time.
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Microsoft’s new Bing Internet search engine may have exceeded the growth of its rivals in June, but it didn’t do much for the company’s overall share of the search market. Bing grew faster than Yahoo and Google during the month. But sadly for Microsoft, it lost market share.
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More sad data points in Microsoft’s Sisyphean battle for the search market. ComScore released May 2009 core search volume and market share metrics for the U.S. this afternoon and they show what search metrics always seem to show these days: Google’s share of the domestic market growing at the expense of its rivals.
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Microsoft’s recently unveiled search engine, Bing, has piqued Google’s interest, but the search sovereign isn’t losing any sleep over it–or it would like us all to think that, anyway. In an interview with Fox Business Network Tuesday, Google CEO Eric Schmidt dismissed Bing as the latest in a string of feeble search efforts at Microsoft.
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The economic crisis has been as much a boon for Yahoo as a bane. Earlier this week, we noted that Yahoo’s share of the search market had increased slightly, thanks to investors obsessively checking Yahoo Finance and its Stock Message Boards. It seems that morbid interest in the stock market’s decline is driving up Yahoo video streams as well.
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With a 4.8 percent share of the search market, according to comScore, Ask has long been the inveterate fourth-place contestant in a sector overwhelmingly dominated by Google. And try as it might–with both redesigns and ad campaigns–the company just can’t seem to build any audience beyond that. So there’s little reason to believe that Ask’s latest redesign–its third in as many years and the 11th since it first launched–won’t be as ineffective as those that have gone before it.
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Microsoft’s Live Search Cashback may not be doing much to improve the company’s share of the search market, but it’s doing wonders for its marketing reach. Microsoft bested University of Phoenix and LowerMyBills.com (the company responsible for those silly dancing cowboy ads that festoon the Web) to claim the title of top display advertiser in June, according to comScore.
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