Microsoft merger with yahoo to compete with google is not happening. Microsoft valued yahoo for $50 billion but yahoo is not interested to join with microsoft for $5o billion. If the merger happened then it is a great threat to google. The online advertising booming is really big. The market share for google is very much higher. Microsoft really need a partner like yahoo to compete at-least. Might be the google is lucky.
Check out the chart and compare the ad revenue made by google it is very far from that of microsoft. Anyways i think the ball is still in google’s court.