There was a time from around 1998 through 2001 that Yahoo was the undisputed leader on the Internet. Other portals (remember those?) followed Yahoo's every move. If Yahoo acquired a web calendar company, the other portals followed suit. A slew of acquisitions ensued: email companies, calendaring companies, personal website companies, online store building companies, etc. etc. This was a very good time to be an Internet entrepreneur. You could almost predict which area would get hot by looking at the path of Yahoo's acquisitions.
With the acquisition of YouTube is Google now setting the pace? Will Yahoo feel the pressure to go out and acquire a video sharing company? There's already a lot of talk about Yahoo needing to move quickly on an acquisition of Facebook, just to show it can be decisive and keep up with Google's moves. Will this translate into other areas as the big 3 (Google, Yahoo, MSN) try to one-up each other? It didn't seem like Google was playing this game, but with the YouTube acquisition, something may have changed.
We'll see how Yahoo and other companies respond to Google's move. But it looks like once again it may be a good time to be an Internet entrepreneur.
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4 comments:
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Google has a semi-monopoly, which, at this point, isn't too bad so far, but I'd imagine it would be easy to take advantage of the position.
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I think they're really the new Microsoft.
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