If Microsoft's bid for Yahoo! goes through, the combination will mean stiff competition for Google and AOL in the Rs 230 crore online advertising market in India that is growing rapidly.
Yahoo! has about 1,500 people in India across its R&D and sales operations, while AOL has a development, test centre, offshore analytics team and content division located here. Indian player Rediff.com too has been entrenched here for over a decade.