By Jack Hawke
ninemsn
Microsoft's planned takeover of internet giant Yahoo could seriously complicate the Australian online media market, according to an industry expert.
Harold Mitchell, executive chairman of Mitchell Communication Group, said Yahoo's Australian partnerships would make Microsoft's proposed deal problematic.
Yahoo7, a joint venture between Yahoo and Australia's Seven Network, was launched in 2006, combining online assets with television and magazine content.
Microsoft is a 50 percent owner of Australian internet portal ninemsn, which uses content from the Nine Network, Seven's chief rival, and ACP magazines.
"It won't be easy if it [the takeover] succeeds," Mr Mitchell said.
"Seven and Yahoo have a successful combination and it wouldn't make sense to break that partnership up."
The Yahoo7 homepage is currently the ninth-most-visited site in Australia, according to December 2007 figures from Hitwise.
Microsoft's decision to take advantage of Yahoo while it was struggling was a "very clever move," Mr Mitchell said.
"They've moved to monetise a big part of internet business."
Yahoo has struggled in recent years, largely due to the overwhelming influence of Google on the internet search market.
Microsoft's move to snap up its internet rival has been widely interpreted as an attempt to win back online market share from Google.
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