Microsoft's Bing overtakes Yahoo! in less than a month


When Microsoft Corp.'s (NASDAQ: MSFT) Bing "decision engine" took final form recently, many internet pundits didn't think it would pose a serious threat to Google, Inc.'s (NASDAQ: GOOG) market-leading internet search positioning. Indeed, Bing hasn't really threatened Google in a little over a week since being officially launched.

What is has done is overtake Yahoo Inc.'s (NASDAQ: YHOO) position in second place behind Google -- all in less than seven days. How on earth did Microsoft's Bing shoot up so fast? It's brand new, has a huge amount of hype and online advertising and there is an initial euphoria goading the numbers so far. Will "decision search" customers who continue to use Bing long-term spell deeper trouble for Yahoo!, or just prove that initial-launch bumps can happen and then fade away?

The problem if Bing continues to snip away at Yahoo!'s market share will be the realization that Yahoo! was not worth the tens of billions Yahoo! wanted in 2008 when Microsoft offered to buy the company. Microsoft may be able to prove that it can run a search operation with a better product and maintain better market share (and revenue) than Yahoo!'s stodgy brand at the moment. But Bing has to continue succeeding like it has in the past week for all that to happen.

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Last updated: February 10, 2012: 05:32 AM

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