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Facebook tries to out-Google Google with new search tool

Sharon Gaudin | April 3, 2012
If, as reported, Facebook is building a search engine to rival Google's, then the competition between the two Internet giants has intensified further.

"I don't think a Google-like search is a service that will benefit Facebook users," he said.

"That's not why they go to Facebook. Google is an infrastructure. Facebook is a destination. Users look to the two for very different reasons. As with any business venture, a failed attempt to capture an already conquered market, such as Web search, could injure Facebook's overall corporate position," Shimmin added.

It's always risky when a company takes its eye off of what made it successful in the first place, analysts said. To move just part of its focus from creating social tools, especially in the midst of an IPO, is a bit of a gamble, some analysts said.

"The possible downside is if Facebook gets all wrapped around the axle trying to out Google Google," said Olds.

"They won't be successful if they try to build an exact substitute for Google. They need to build something that's uniquely suited to Facebook users and serves them better, or at least as well, as Google's search tools," Olds added.


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