Microsoft's US$44.6 billion fight for search

After realizing how much money Google is making from search and advertising, software giant Microsoft is bidding for Yahoo! Now the battle for the grip on computer users goes to a new level. These big three are in a class of there own when it comes to business sense.

For Yahoo, the bid represents another painful reminder of how missed opportunities and mismanagement combined to open the door for Google to supplant it as the Internet’s main gateway, thereby getting hold of you and me - and the entire world.

My spiritual guide used to say "...the meek shall inherit the earth". But now i hear that "the geek shall inherit the earth".

Here below is an interesting timeline:

1975
Microsoft founded.

1995
Yahoo founded, begins serving ads online. Microsoft launches MSN Web portal.

2000
Yahoo starts delivering search results generated by Google’s technology. Google introduces AdWords, its system for displaying ads next to search results based on keywords used.

May 2001
Terry Semel becomes Yahoo’s chairman and CEO.

February 2002
Microsoft taps Overture Services Inc., later bought by Yahoo, to power its advertising-driven search engine. Google overhauls AdWords with cost-per-click model that makes online advertising easier and more cost effective for smaller businesses.

May 2002
AOL picks Google as search and advertising provider.

2003
Google AdSense launches, letting outside Web sites make money by plugging in targeted text ads by Google.

October 2003
Yahoo announces plans to buy Overture, giving it a system for selling search ads similar to Google’s AdWords.

February 2004
Yahoo replaces Google search results with its own technology.

April
Google launches free e-mail service Gmail, expanding ad opportunities.

August
Google holds initial public offering.

December 2005
Google makes $1 billion, 5 percent investment in Time Warner Inc.’s AOL and extends ad partnership.

November 2006
Yahoo builds advertising partnership with consortium of daily newspapers.

February 2007
Yahoo launches long-awaited search and advertising technology overhaul, known as Panama.

April
Google agrees to pay $3.1 billion in cash to acquire ad-management technology company DoubleClick Inc. Yahoo acquires online advertising exchange Right Media Inc. for $680 million.

May
First rumors hit Wall Street that Microsoft is contemplating Yahoo buyout. Yahoo CFO Susan Decker promoted to oversee advertising operations. Microsoft says it will buy online ad company aQuantive Inc. for $6 billion in cash.

June
Semel steps down as Yahoo’s CEO; co-founder Jerry Yang takes over. Decker becomes president.

July
Yahoo launches SmartAds, a behavioral, demographic and geographic ad targeting system.

August
Microsoft buys AdECN Inc., a stock market-like Web ad exchange. It also launches ContentAds, context-relevant ads on some sections of MSN.

September
Yahoo announced plans to buy online behavioral targeting specialist BlueLithium Inc. for $300 million in cash.

October
Yahoo announces plans to buy AdInterax, a rich media ad business, for undisclosed amount. Microsoft spends $240 million on a 1.6 percent stake in Facebook, ensures ad partnership will continue.

December
Microsoft steals Viacom ad business from DoubleClick. Other ad deals since the acquisition of aQuantive include financial news site CNBC.com and Digg Inc., a reader-powered news site. Google’s proposed buyout of DoubleClick gets green light from U.S. regulators, still pending in Europe.

January 2008
Semel resigns as Yahoo’s chairman. Microsoft makes unsolicited $44.6 billion offer for Yahoo.