Where did Yahoo failed in the battle with Google ?

Yahoo is still one the of biggest media companies in the World, yet it did not had the power to fight Google when it was about getting most of the market. As I said, Yahoo! is a media company, not a development of technology company - and I think this is where they started the falldown.

Being now in the need of sharing their business with Microsoft, Yahoo! failed to realize that they had to develop new technology, they had to find new ways of making the users happy and attracting new ones. It is hard to compare with Google when your list of aquisitions is limited. Even more limited than Microsofts` one.

Yahoo! failed to innovate, so they lost. That was the point 0 in their decrease in share market. A company that does not innovate in online is a dead company. For success, in this fast era, you need new & attractive things. If you fail to offer them, users will search for others that can give them the results.