Those who have been following talks between Microsoft and Yahoo on the possible partnership can at last sigh in relief. After several months of continued efforts from these two internet giants, a 10-year partnership has been signed up by Yahoo and Microsoft. These two competitors have joined hands to topple Google monopoly. With this new partnership, the searches on Yahoo.com will be supported by Microsoft’s new search engine Bing. Yahoo will work on getting more premium advertisers for its network.
As per the latest deal, Microsoft has agreed to share with yahoo 88% of its revenue that gets from the searches made in the Yahoo network. In return, Microsoft will be entitled with the right to integrate the search technology of Yahoo in its own search platforms online. Yahoo’s income is likely to go up by $500 million a year. This partnership is likely to restore the share values of Yahoo that has been crumbling. Steve Ballmer in is communication with the media announced that Microsoft will create more innovation in search to add value for the advertisers investments. This will free the consumers from having to depend on a single company.
Both Microsoft and Yahoo have been struggling to fight their single dominant competitor Google for years. These two companies have been toggling back and forth with various partnership deals and nothing materialized until this Wednesday. Yahoo had to do a complete revamp of its management to come up with effective strategies that will attract a workable deal from Microsoft. At last, now these two companies have successfully signed up the deal and waiting to make a difference on the web. This partnership is likely to make the World Wide Web into a different place and the search industry should be prepared to take a new shape. As the Google monopoly is about to be broken down, advertisers expect to benefit from this new partnership.
Yahoo will not be investing more money on its own search technology and it will now rely on Bing. This will bring a considerable amount of savings annually to the company. Yahoo is the second largest search engine but with just 8% of the market share. It has a huge gulf to cover with the topper Google that holds about 70% of the market share. Microsoft is far behind Google and Yahoo with just a 3% market share in the search industry. In partnership, Microsoft and Yahoo hope to increase their market share and eventually catch up with Google. Though Google still has a huge lead margin, it has to tighten its belt to ensure that it continues to be the leader in the search industry. The events that are going to unfold in the upcoming months are sure going to be interesting.