New Delhi: With IT giant Microsoft bidding $44.6 billion to acquire internet major Yahoo to take on growing competition from Google in the fast-growing online advertisement market, domestic players in this arena today said they are ready for the new challenge.
A successful deal would make the combined entity much more formidable in the online advertising market, which is estimated to grow from $40 billion in 2007 to nearly $80 billion by 2010.
Besides the internet search market, Google currently also enjoys a significant share in higher-revenue advertisement market worldwide, including India.
“The Indian online advertising market is still in very nascent phase and there is room for every player,” David Appaswammy, the US-listed Indian internet firm Sify’s chief communication officer said.
Sify has an alliance with Google for its search service ‘Khoj´ and the deal would not impact it, he added.
Google dominates the internet search market with an estimated 85% share, while the rest is shared between Yahoo, Rediff and other players.
From a worldwide market point of view, a final deal would give Microsoft a good play in the online market, Rediff.com’s vice president (Marketing) Manish Agarwal said.
“They can become a serious player online, have a good share... a lot of synergies would come from the product point of view, from consumers behaviours, and from innovation,” he said, adding that it would make Microsoft number two player in the online space.
Asked about the probable job cuts post-merger, Agarwal said that there could be some issues on that front in the US, but there should not be much from an India perspective.