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Yahoo, a well-known name in the search engine landscape, has initiated the development of its own web browser prototype. Additionally, the company has expressed interest in acquiring Google’s Chrome browser, contingent on a potential court ruling that might compel Google to divest it.
This development is significant in light of the ongoing remedies trial by the Justice Department aimed at addressing Google’s dominance in search. Among various proposals, the DOJ has requested that Judge Amit Mehta consider breaking up Google by mandating the sale of Chrome. The agency argues that Chrome serves as a vital distribution channel for Google’s search engine, contributing to its monopolistic power.
Yahoo is not alone in its ambition to acquire Chrome. Other companies have emerged as potential buyers, although not all possess the financial capacity to complete such a purchase. The CEO of DuckDuckGo noted that acquiring Chrome would be financially unfeasible for their company. Conversely, representatives from both Perplexity and OpenAI have indicated interest in the browser during testimonies at the trial.
Yahoo recognizes the importance of controlling a web browser for effective search functionality. Brian Provost, Yahoo’s Search General Manager, highlighted that approximately 60% of search queries are conducted through web browsers, with many users performing searches directly from the address bar. To capitalize on this landscape, Provost revealed that Yahoo has been “actively internally developing a prototype of a browser” since last summer, aiming to better understand the requirements for launching a competitive product. He also mentioned that discussions are ongoing with various companies regarding a potential browser acquisition but refrained from disclosing specific names.
The timeline for the completion of Yahoo’s browser prototype is estimated to be between six to nine months. However, acquiring Chrome could present a quicker path to enhancing Yahoo’s market presence. Provost referred to Chrome as “arguably the most important strategic player on the web,” projecting that Yahoo’s search market share could increase from its current 3% to possibly double digits if the acquisition were successful. He suggested that the financial implications of such a deal would be in the tens of billions of dollars, and emphasized that, with the backing of its parent company, Apollo Global Management, Yahoo would be equipped to secure the necessary funding. Interestingly, Apollo owns a browser brand linked to a previous antitrust case, yet Provost did not categorize it as an active competitor. That brand is known as NetScape.
Source
www.theverge.com