Google has entered the battle for control of the internet. It has made an offer of around $46 billion for Yahoo.
This outbids Bill Gates and Microsoft who wants control of Yahoo to break Google's tight hold on the internet search engine and marketing markets. Google claim that Microsoft's bid might put free email and instant messaging services such as those provided by Hotmail
at risk.
There are rumours that Eric Schmidt, Google boss, has approached Yahoo with a proposal that would help them fend off the advance of Microsoft. This is a massive battle of the giants. Competition laws prevent Google from buying up Yahoo totally, but they may be able to get what they want in other ways.
The news on the street is that Google may lend money to other potential bidders like Time Warner, or News Corp.
More than 50% of US internet searches are made through Google, with Yahoo in second place and Microsoft behind. There is so much internet power in the hands of these three companies that monopoly regulators in US and Europe are likely to be keeping a close eye on developments here.
Yahoo is still uncertain about joining forces with Microsoft to challenge Google's dominance.
The money discussed here around bids and counter bids, is like a giant game of internet Monopoly and less competition out there can only be detrimental to ordinary everyday users.
