Analysts Criticize Potential Microsoft-Yahoo Merger

Phoenix, AZ (AHN) - A number of market analysts have questioned Microsoft's bid and possible acquisition of the Internet company, with experts saying that a possible merger would not do much in terms of competition.

Despite optimistic comments pointing out that the merger would aid Microsoft as Yahoos addition would help an already successful company, others have cast doubt on the actual market relevance.

One analyst questioning the effects of the collaboration was Neil Morgan of online analysis firm Omniture.

"What will challenge Google's dominance is another shift in user behavior so that people use another metaphor for finding content on the web," said Morgan, as quoted by IT Week. "It's already happening with social networks: five years ago everyone used the browser, then in the last five years it has been Google."

He also mentioned that a Microsoft-Yahoo merger would significantly limit the range of ad space options.

"Microsoft is trying to put its arms around all digital channels and obviously it [seems] anti-competitive but there doesn't seem to be much that can be done about it," he said.

The same opinion was shared by two other attendees of the Interactive Advertising Bureau annual meeting Monday, with both analysts calling the merger a case of "the blind leading the blind."

A more blatant comment was gathered from Randy Falco, CEO of AOL, a competitor of both Microsoft and Yahoo! Falco also said that the merger would be useless. His company hopes to pick up the spoils of the battle with Google.

"I'm hoping the two of them will beat each other's brains out over search and leave the display market to us," he told attendees, according to Advertising Age. "I think it's a mistake. But I think Napoleon said never interrupt your enemy when they're in the middle of making a mistake."