UPDATED 16:44 EST / DECEMBER 08 2010

Yahoo Admits Being Overcomed by Giant Search Engine Google, States a Competition with Facebook

Carol Bartz, Yahoo’s chief executive, recognized the true enemy of its service, which most of us would wrongly point at Google, naming the social networking website, Facebook as “our greatest competitor.”

Google is perceived not only as a search engine, but as an industry giant incorporating, a full range of products and services. The winning strategy seemed to be the acquisition of smaller companies, which improve the market share by bringing new customers and empowering the brand of the first search engine in the world.

Yahoo is also considering this strategy of eating up the smaller fish. Yahoo’s plans include the numeric enhancement of current users, content, engineers and advertising technologies.

This frank analysis could be easily interpreted as a recognition of the invincible control that Google has over plenty of domains, starting with search engine, media sharing and we applications. Yahoo is likely to aim at increasing Facebook, which is worth $40 billion, while Google is obviously well beyond any limits of comparison: $187 billion.

Although Bartz has been at the head of Yahoo for almost 2 years now, the developing strategy is increasingly controversial. Yahoo is expected to take a step in the near future, in order to escape from anonymity. For the time being, Yahoo is interested in teaming up with others, including the social game developer Zynga , with which it’s discussing a prospective deal. Mafia Wars and Fishville, which are one of the most known games are already available on Yahoo website. Officials say that the deal between Zynga and Yahoo will not affect the relationship built with Facebook by the game designer company.


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