duncan228
07-30-2009, 02:03 PM
A longer piece with more detail is here:
http://www.gouverneurtimes.com/index.php?option=com_content&view=article&id=5533:microsoft-yahoo-team-up-against-google&catid=54:worldnational-news&Itemid=153
Microsoft and Yahoo team up against Google (http://www.3news.co.nz/Microsoft-and-Yahoo-team-up-against-Google/tabid/412/articleID/114506/cat/41/Default.aspx)
Bing is the thing - that's the gist of a new 10-year web search deal between Microsoft and Yahoo.
Under the deal, Microsoft's Bing search engine will be the sole provider of search and paid search technology for all of Yahoo's websites.
Yahoo will sell premium search ads for both companies. Yahoo says the partnership will boost its annual operating income by about US$500 million. But beyond that, Yahoo and Microsoft hope to challenge the dominance of search leader Google.
"This is the best and last chance that both Microsoft and Yahoo have at trying to make a dent against Google in the search market," says Tuon Tran, associate director of research, Morningstar.
There is no upfront payment to Yahoo, just a revenue sharing agreement, that gives Yahoo an initial rate of 88 percent of search revenue on its sites for the first five years. Many believe that was a big concession from Yahoo.
"To the extent that that Yahoo said they sacrificed an upfront payment to get more share I think is just lip service and given the choice I think Yahoo would have preferred to get one billion or two billion dollars up front but they couldn't 'because Yahoo didn't really have any other choice other than trying to go it alone," says Tran.
Google currently has 65 percent market share, compared to Yahoo's 19 percent and Microsoft's 8 percent. The deal follows Microsoft's failed 2008 effort to acquire Yahoo with an unsolicited offer of nearly US$45 billion.
Because the search deal wont' close until early next year, Google has time to get ready. says Standard & Poor's Analyst Scott Kessler:
"That gives Google a window of opportunity we think to lock up affiliate partners perhaps at less favourable terms and pricing than Google had received in the past. If they are looking for new business, maybe Google is going to offer more just to insure that they have a more favourable competitive landscape."
But it's still a game of catch up, that will keep both Yahoo and Microsoft on the chase.
http://www.gouverneurtimes.com/index.php?option=com_content&view=article&id=5533:microsoft-yahoo-team-up-against-google&catid=54:worldnational-news&Itemid=153
Microsoft and Yahoo team up against Google (http://www.3news.co.nz/Microsoft-and-Yahoo-team-up-against-Google/tabid/412/articleID/114506/cat/41/Default.aspx)
Bing is the thing - that's the gist of a new 10-year web search deal between Microsoft and Yahoo.
Under the deal, Microsoft's Bing search engine will be the sole provider of search and paid search technology for all of Yahoo's websites.
Yahoo will sell premium search ads for both companies. Yahoo says the partnership will boost its annual operating income by about US$500 million. But beyond that, Yahoo and Microsoft hope to challenge the dominance of search leader Google.
"This is the best and last chance that both Microsoft and Yahoo have at trying to make a dent against Google in the search market," says Tuon Tran, associate director of research, Morningstar.
There is no upfront payment to Yahoo, just a revenue sharing agreement, that gives Yahoo an initial rate of 88 percent of search revenue on its sites for the first five years. Many believe that was a big concession from Yahoo.
"To the extent that that Yahoo said they sacrificed an upfront payment to get more share I think is just lip service and given the choice I think Yahoo would have preferred to get one billion or two billion dollars up front but they couldn't 'because Yahoo didn't really have any other choice other than trying to go it alone," says Tran.
Google currently has 65 percent market share, compared to Yahoo's 19 percent and Microsoft's 8 percent. The deal follows Microsoft's failed 2008 effort to acquire Yahoo with an unsolicited offer of nearly US$45 billion.
Because the search deal wont' close until early next year, Google has time to get ready. says Standard & Poor's Analyst Scott Kessler:
"That gives Google a window of opportunity we think to lock up affiliate partners perhaps at less favourable terms and pricing than Google had received in the past. If they are looking for new business, maybe Google is going to offer more just to insure that they have a more favourable competitive landscape."
But it's still a game of catch up, that will keep both Yahoo and Microsoft on the chase.