Microsoft & Yahoo Deal Gets One Step Closer

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News Posted: Sat, Feb 20 2010 4:13 PM
As you will recall, Microsoft and Yahoo announced an agreement back in July to team up in hopes of improving their competitive position against Google. Now that the deal has been unconditionally cleared by the U.S. Department of Justice and the European Commission, the partnership is one step closer to reality.

Under the terms of the agreement, Bing will become the search engine for both Microsoft and Yahoo sites. Yahoo, in turn, will focus on attracting the big advertisers. The automated auction of search ads that will be used on both companies' sites will be handled by Microsoft; Microsoft will pay Yahoo a portion of search ad sales generated on Yahoo pages.

By combining forces, Microsoft and Yahoo are creating a single conduit for advertisers to access customers on both sites. In doing so, the companies are hoping to become a credible alternative to Google.

Microsoft has already made some progress in the search engine market, having picked up 3.3 points of market share since the Bing search engine was launched last June. In an interview with Reuters earlier this month, Microsoft's Yusuf Mehdi said, "Really now, the goal is about share gain. If we grow share, we will grow our way into profitability, and we have confidence we can do that."

Now that the agreement has been met with regulatory approval, Microsoft can begin the task of putting Bing into Yahoo sites. The companies hope to have the partnership fully operational by the end of this year in the U.S. The partnership should be globally complete by early 2012. The deal had previously been approved by regulators in Australia, Brazil, and Canada. The companies are still working with regulators in Korea, Taiwan, and Japan.
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3vi1 replied on Sat, Feb 20 2010 8:08 PM

This is officially the beginning of the end for Yahoo. They just gave MS all their advertising customers, shut down their search engine, and allied themselves with someone who fully intends to make all of their other services redundant.

It would be interesting to see publicly how much money the Yahoo execs are making on this deal, which appears to be totally based on short-term profit and not at all in the interest of the Yahoo employees (particularly developers).

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?


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I think you hit the nail on the head 3vi1. Any company once it goes public risks losing its soul, and that's what happened to Yahoo. Its co-founder, Jerry Yang, was pushed out because he was seen as a barrier to the Microsoft-Yahoo deal.

So yeah, the execs make out big...and will move on to another company once their $200 Cristal runs out. Employees in "redundant" positions will be promptly shown the door with 3 months' severance. I wonder which consulting firm will be assisting in this impending merger...

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rapid1 replied on Sun, Feb 21 2010 3:37 AM

Yeah well really though what relevance does yahoo have alone anymore anyways. I have not used yahoo as my search engine for years. I don't use there messenger, I don't see anything of them at all really. So at least someone will still have a job as otherwise I see Yahoo dieing out completely.

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3vi1 replied on Sun, Feb 21 2010 11:57 AM

Yahoo Finance, and some of their other communities still have a relatively large market share. They've managed to continually turn a profit on advertising from these services.  But, like I said, Microsoft is making them redundant by adding all the same features to Bing (though it's currently *way* behind the feature-set of Google or Yahoo).

Yahoo is as good as done now. They might have survived indefinitely with a little promotion and development if they hadn't climbed in bed with MS, but I will be surprised if they're even around three years down the road after this.

What part of "Ph'nglui mglw'nafh Cthulhu R'lyeh wgah'nagl fhtagn" don't you understand?


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Soupstyle replied on Sun, Feb 21 2010 12:02 PM

instead of MicroHoo, they should combine it with Bing to give us:


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Inspector replied on Mon, Feb 22 2010 6:38 PM

LMFAO soupstyle :D that was a nice one!

i do most my searches on Google and sometimes on bing but very realy so im sticking with Google till bing becomes better then Google :)

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