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The influence of Microsoft’s bid on Yahoo in China Search Market

Alex Christie

14 February 2008

Microsoft’s bid to buy Yahoo has a significant influence not only in Silicon Valley, but in China as well.  What will happen in the Chinese search market, if Microsoft successfully buys Yahoo? 

At the end of 2007, Microsoft Live Search was not a strong competitor in Chinese Search engine Market.  Meanwhile Yahoo China is already China’s third biggest search engine behind Baidu and Google, and it enjoys a good reputation, especially in music search.

Music search is a very important part of the Chinese search market.  Over 70% of Chinese internet users, who are under 24 years old, considered music as the most frequent search content.  In 2007, Yahoo China ranked second in the Music Search Market (iResearch, 2007), while Microsoft Live China has not started a music search service yet.  By acquiring Yahoo, Microsoft Live China would attract huge amounts of young users by combining the Yahoo music search and its existing entertainment community.

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