Yahoo!'s (NASDAQ:YHOO) big footprint in Asia could be a significant benefit to Microsoft (NASDAQ:MSFT) as it tries to gain market share from Google (NASDAQ:GOOG) in the region. Yahoo! owns large pieces of Yahoo! Japan and China e-commerce firm Alibaba. A takeover from Microsoft would give the world's largest software maker access to all of that.
According to Reuters, "If the deal goes through, Microsoft stands to gain a leg up over Google from cooperation with Alibaba's online software and Yahoo Japan's online customer base."
The theory may be based on soft reasoning. Yahoo! has been operating in the region for a decade and Google, which entered the market much later, has done fine. In Japan, Google is No.2 in audience behind Yahoo!, according to comScore. Google recently signed a deal to be the default search engine for NTT Docomo (NYSE:DCM) handsets. Docomo is the dominate cellular provider in Japan.
Microsoft may pick up relationships with web properties in Asia, but if its search product does not measure up to Google's that may not matter. Being better is the best way to get bigger. Buying in won't guarantee success.
Struggling Playboy outsources business ops
J. Crew earnings preview: A strong Q3 all buttoned up?
Twitter to make acquisitions, generate revenue in 2010
