Archive for the ‘Search Engines’ Category

Why 1% Of Search Market Share Is Worth Over $1 Billion

May 26, 2007

“ComScore released their April 2007 search market share numbers showing that Google increased its market share lead to about 50%. Yahoo has about 27%, Microsoft 10%, AOL 5%, and Ask.com has 5%. That got me thinking. Should AOL and Ask just give up…hopelessly behind with only 5% market share? In a word…NO!Each 1% of market share is worth at least $1 Billion in market cap. Google has 50 points of market share and a stock market cap of $150B, or $3 Billion for each 1% of search market share. Other competitors don’t win the same revenues and market multiples, but even at the low end, 1% of market share is worth over $1 Billion.”

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