How will the Microsoft Yahoo merger affect the Internet?

Yahoo! will exist after the takeover (it’s not a merger as such), because the Yahoo! name is a very recognizable and marketable one, at least for the time being. I would expect Microsoft to instantly tie the Yahoo! name to one of their own brand names, (Yahoo!MSN or something maybe) and eventually in a number of years drop the Yahoo! brand altogether. Yahoo! as an organization, I would expect to be swallowed into Microsoft bit by bit until there is nothing left.

Google is obviously worried about the deal - suddenly two of its competitors are going to become one. I doubt it will have much affect on Google at first, but in time it may have as Microsoft try to edge Google out of the marketplace. Google is diversifying into other areas Yahoo! never tried to go, and Microsoft aren’t having much success at currently, so Google is still well positioned into the future for now at least.

Only time will tell…