Microsoft, Yahoo may finally embrace with search, advertising deal

July 28, 2009 | Kim-Mai Cutler | Comments | |

yahoo_logo1Update: Such a deal has just been announced.

Yahoo and Microsoft are close to a search and advertising deal that would finally bring them together in a fight against Google’s dominance, according to the Wall Street Journal. Yahoo would use Microsoft’s Bing search engine for its properties and handle sales for some text ads in search results. The deal would deliver the pair 30 percent of the search market against Google’s 65 percent.

For Microsoft, the agreement would boost traffic for its newly launched Bing search engine and give the company part of what it wanted in its failed takeover attempt. Yahoo would get to continue selling advertising and cut costs by relinquishing an expensive effort to keep up with Google’s search technology. The deal wouldn’t include an upfront payment to Yahoo and would instead focus on a revenue share, according to AllThingsD.

Yahoo’s once icy relationship with Microsoft has thawed  since the arrival of Yahoo’s new CEO, Carol Bartz, who said in May she was open to talking to Microsoft if the deal came with “boatloads of money,” “good data” and “good technology.”

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About the Author, Kim-Mai Cutler

Kim-Mai was born and raised a stone's throw from Apple headquarters in Cupertino by a devout Hewlett-Packard family. After attending UC Berkeley, Kim-Mai worked for Bloomberg, The Wall Street Journal and Dow Jones Newswires in New York, Los Angeles, London and Buenos Aires. Follow her on Twitter at @kimmaicutler, and follow VentureBeat on Twitter at @venturebeat.

  • Merger of Microsoft and Yahoo would yield no great effect since Google is extremely aggresive, innovative, high in quality and performance. Now Google have even overthrown Yahoo from Alexa's No.1 Website.
    Google prefer buying famous technologies ( Youtube and Feedburner) and this is how it had and will maintain internet dominance. Microsoft and Yahoo lag behind in quality of their products while Google don't. Most People prefer quality and this make Google top peaks.
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    Google prefer buying famous technologies ( Youtube and Feedburner) and this is how it had and will maintain internet dominance.
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  • Wow! Finally Microsoft has reached a deal Yahoo for an internet search partnership. Will the newly announced deal between giants Microsoft and Yahoo be a good thing? Got to wait and see. But atleast Microsoft and Yahoo deal is straightforward and not complex at all and ofcourse, the negotiation talks have been going for long. I was just curious to know all the past negotiations between Microsoft and Yahoo so collected all the articles and links (more than 200) related to the current merger and the previous events or negotiations between Microsoft and Yahoo. If you are interested check the link below.
    http://markthispage.blogspot.com/2009/07/saga-o...
  • This agreement would definitely provide a much needed momentum to Bing in terms of traffic as large scale traffic is mandatory in order to learn what people search for. Its tough to say for now that whether this move would eat away Google’s market share but without doubt this will be good for consumers as competition is always healthy
  • chrystalk
    I can’t believe this deal was in the making for ten years.
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