One analyst has a suggestion for how Apple could put pressure on Google: acquire DuckDuckGo. Bernstein analyst Toni Sacconaghi says that an acquisition of privacy-focused DuckDuckGo would allow Apple to put pressure on Google and tap into lucrative advertising revenue.
According to Sacconaghi, Apple should acquire DuckDuckGo for around $1 billion as a way to put more pressure on Google and capture the advertising revenue that comes from the search industry. As reported by
Street Insider, acquiring DuckDuckGo could serve as a “stalking horse” to pressure Google:
Google is clearly the dominant force in search today. However, we suspect the company’s fear of ‘rocking the boat’ — which could compromise $15B in profits it captures today from iOS — may ultimately limit its freedom of action with Apple. Conversely, Apple may be in a stronger position than at first glance, given it controls the keys to the kingdom on who can monetize iOS search. However, it remains uncomfortably dependent on Bing to act as a counter weight to Google — hence our suggestion that Apple acquire its own search engine. Finally, Microsoft Bing may (counterintuitively) have the most ‘option value’ vis-à-vis the status quo — although it remains to be seen how aggressively it will pursue this opportunity.