Yahoo-Microsoft Partnership

 

Author: Spencer J Casey

Sun, 21 FEB 2010 12:00:00 CST – Microsoft and Yahoo reached an agreement in July of last year to partner in search and advertising. Last week, United States and European regulators approved the deal. For the next 10 years Microsoft will provide the search technology for Yahoo’s portal. This agreement will bolster the market share of Microsoft’s new search engine ‘BING’. As of January, comscore.com estimated that Bing has 11.3% of the US search market. Yahoo handles approximately 17.3% and Google, the perennial powerhouse, handles 65.7% of searches. So how will Microsoft-Yahoo merger impact the market place?

The partnership between Microsoft and Yahoo does not redefine the search engine landscape. Google obviously controls internet search and advertisements with nearly 70% of the market share. Even after reaching this deal, Microsoft and Yahoo are clearly in second place. However, what this deal does give consumers is a clear alternative for search and advertising. Bing may not necessarily be a formidable threat to Google, but it definitely will get their attention. Competition between the companies may intensify the ‘search wars’, resulting in improved and more relevant search results. Already we have seen Google make adjustments to their search interface to counter Bing features.

The results: All of this is a win-win for consumers.
 

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