At last Microsoft and Yahoo got a new deal, Microsoft and Yahoo have already announced their deal an agreement that let Microsoft’s Bing search engine take over the Yahoo’s search site. This was an interesting story Microsoft has been chasing Yahoo for months and the Redmond based software company was really in desperate need of Yahoo. According to AllThingsD Microsoft would give Yahoo 110% of the ad revenue it collected by selling ads against its Bing search engine on Yahoo sites. The said deal would last only 10 years.

Yahoo’s 10 search deal with Microsoft is a great move it will help Microsoft in its quest for a larger share of the Internet for Bing, Microsoft’s “decision engine” that it claims isn’t a Google-style search engine. For the first two years of the deal, Microsoft will pay Yahoo 110% of the revenue it takes in serving ads on Yahoo’s websites. Yahoo will separately sell premium ad deals for both companies. The story was reported last night by AllThingsD editor Kara Swisher a reliable Yahoo stories source.


The deal significantly changes the landscape of the search advertising market; The Yahoo Microsoft deal would create a credible challenger to Google’s search business. The deal comes about 2 months after Microsoft launched Bing, a revamped version of its search engine. With a massive marketing effort, Bing got a good job here it already taken market share from Yahoo Bing market share has been reportedly hovering around 8 percent. But Google still has emerged as the undisputed leader in the market, boasting a search engine that has a much wider reach than both Yahoo and Microsoft combined. Both Microsoft and Yahoo need each other resources, Yahoo and Microsoft, the No. 2 and No. 3 players in search respectively, the two companies hope to mitigate Google’s dominance. Both companies have seen worrying market share erosion, and web experts have been predicting that a deal could happen any time. I‘ll think Google should watch this because Microsoft was determined to challenge Google; the Redmond’s giant has been throwing money on its online business despite great losses. A single great battle is about to explode in the web: the battle would decide who will control the search business, Could Google stay as master of the web or Microsoft would ends Google’s winning streak Both Microsoft and Yahoo carry a lot of weight and nice brands.


The two companies claim the search deal and technology exchange could lead to more innovation in search and open a new online advertising strategy. Microsoft will get an exclusive 10 year license to Yahoo’s core search technologies; this could lead to an improvement of Microsoft’s Bing search engine. Still we got no idea if this is a win-win agreement for both Yahoo and Microsoft. Both Microsoft and Yahoo would risk their entire online business at this deal. Should Google be worried about the Search deal?

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