Google once again has topped the online searched and outpaced the growth of search market itself by 13%.  The online search market has grown year over year only by 3% however, Google's search business grew by 16%.  Yahoo, MSN/Live Search and AOL lost their market share whereas as Ask.com has gained the market share.  You can view the full report here.

Microsoft has today announced Live Search Cashback service, a re-branded version of JellyFish.com which they acquired last year.  This is another version of comparison shopping which gives you cashback.  Is it really going to help Microsoft with their conquest to gain a significant market share in the Search Market?  That remains to be seen.    I am bit skeptical because of the way it is being positioned.  It seems to be a little confusing as it is really a shopping site.  For example, once I go to the Live Search Cashback, It says Live Search next to the search box.  As a user, I am tempted to search for "jotibasi" and I get no results.    But if I go to their live.com site, an do the same I see several results. I personally think that  ff it were simply Windows Live Cashback Shopping then it would have been a better and clearer offering.   
BTW, check out what Henry Blodget, the former Wall Street analyst who was responsiple for pumping up a lot Dot Bombs has to say.

First it was India's Rediff.com (REDF), then China's Bidu.com (BIDU) and now Russia's Yandex is going public with a valuation of approximately $2B.  The stock will trade on NASDAQ.  Will there be a search engine from Brazil next?

WSJ (Subscribe) just reported -  "Microsoft said that it is considering an agreement with Yahoo and  opened up the possibility that it would consider buying part of the Internet company".   It was pretty ironic that I was just having a cup of tea with one of the Microsoft employees and we were discussing how Microsoft can gain market share in online search market and since Yahoo is not agreeing to a merger they should look for some other alternative.  Ballmer must have overheard us (just kidding). 

But this new announcement from Microsoft definitely shows that the popular Game Theory is at work and Microsoft is really facing the Prisoner's dilemma in order to make any progress in their search business.  I think it is a good strategy.  They should definitely pursue it and with Icahn's proxy threat, Yahoo would be willing to give in while still allowing its founder keep his pride.  And it would be cheaper for Microsoft too.  Compared to hassles of integrating an entire enterprise, they will have to simply work together on one common goal, "Taking Google Out".  The only risk to Yahoo.  Microsoft may get the know how and eventually ditch them by leaving them no good.  But that can happen anyways if Yahoo is not into any kind of deal with anyone.