JP Morgan’s Imran Khan runs some numbers on the impact of Microsoft’s (MSFT) new search deal with HP (HPQ), which replaces the PC giant’s old pact with Yahoo (YHOO). Conclusion: Pretty much a non-factor all the way around.
- Microsoft may gain up to 1% of search market share — but that’s based in part on an assumption that an increasing number of PC users will use their machines’ default search engine. Khan doesn’t explain his rationale for that.
- What ever share MSFT does gain will come from Yahoo, but Yahoo’s margins should increase, since they no longer have to fork over acquisition costs to HP.
- Not mentioned once in Khan’s report: The impact of the deal on Google — because there won’t be any.
See Also: Microsoft’s Non-Google Killer