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Monday, March 19
Comcast Threatens Google with Microsoft Negotiations
Comcast
, the second largest ISP and top cable provider in the US, is airing its dissatisfaction with
Google
by entering into search and advertising negotiations with
Microsoft
.
The company's current search and advertising contract with Google is due to expire at the end of this year, and the ISP/Cable provider is looking to find a more lucrative deal. Comcast made US$70 million in shared advertising revenue via the Google contract, but wants to see a 30% increase in this figure before signing a new contract.
With 15 million visitors per month, Comcast.com is a major source of search traffic for any potential search engine ally, and accordingly believes that US$100 million is a suitable asking price.
The real question is whether Microsoft or any of the other rumored search engine candidates (Yahoo!, AOL) will answer the call and be a suitable replacement for Google. Considering Google's size and strength, these deal discussions by Comcast could simply be a negotiation tactic to "force" Google's best offer.
When you consider that Google already has the lion-share of search, and search habits die hard, I wouldn't be surprised to see Google call Comcast's bluff. I guess we'll see who has the upper hand in the coming months.
Posted by Rene LeMerle at 11:44 PM GMT
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