Google forces online consolidation
You know you’ve made it when the competition walks in terror of your objectives.

Attila the Hun as depicted by the BBC
If you generate real fear in your space, you’ve achieved the status of Attila the Hun, who terrorized the Roman Empire 2000 years ago.
Who is the 21st century’s online version of the bloodthirsty Hun? Google, of course : the “Do no evil” search giant which can be surprisingly heavy-handed in defence of its own interests.
Microsoft has clearly given up on its solitary attempts to challenge the unchallengable, and has been seeking to swallow other stragglers to redress the position.
It should heed the old warning, though : “You are what you eat”.
Yahoo is refusing the toothsome embrace of the software king and is now in talks with Rupert Murdoch’s News Corp.
Now correct me if I’m wrong, but escaping the clutches of one Great White Shark only to fall longingly into the jaws of another, doesn’t seem like a very good strategy to me. But what do I know?
The two sides are apparently in discussions about merging MySpace and News Corporation’s other online properties with Yahoo. News Corp would get a stake of more than 20pc in the internet company.
The deal would help the Murdoch corporation fight back against the growing dominance of Google’s internet search business. There’s that name again.
Last year, Rupert Murdoch said: “We’ve got to find new ways and new business models to get revenues. Or else the world is going to be owned by Google.”
He has made no secret of the fact that he views attacking Google’s dominance as the key to internet progress for his businesses.
The deal would also leave Microsoft without a growth strategy. The Redmond softies have been desperately trying to make their mark in the online world after seeing their software and operating systems business deliver little value to shareholders in recent years.
A News Corp-owned Yahoo would give Murdoch an established news platform online and, under the terms being discussed, would leave Yahoo essentially independent to take the fight to both Google and Microsoft.
Somehow, I see Google surviving that, but Microsoft may have nowhere to hide — online at least.
The Wall Street Journal — now Murdoch owned — is calling the value of MySpace at between $6bn and $10bn. A spokeswoman for Yahoo said last night, “Our board is continuing to carefully and thoroughly evaluate its strategic options and is committed to pursuing initiatives that maximize value for all stockholders.”
One can’t help thinking that somewhere in the background, watching like a hawk, is the wily Attila. This time though he’s running out of options. Anti-Trust laws are likely to limit Google’s room for manoeuvre.
Attila was finally caught up with and defeated by a superior Roman General leading a coalition of tribes pushed aside by the Hun. They included Saxons, Franks and Celts.
Are sufficient forces now gathering that will see off the internet’s own version of Attila?
Maybe not this time. But fall he will. History is implacable on that.



