Print 27 comment(s) - last by 67STANG.. on Jul 30 at 2:41 AM

A cartoonist's take of the new deal.  (Source: MSNBC)
Pair faces serious antitrust scrutiny

Yahoo and Microsoft, as expected, have announced a major partnership.  After a year and a half of failed talks, the pair finally have come together and cut a deal.  Many changes were necessary for the deal to take place -- a succession of Yahoo's CEO leadership from co-founder Jerry Yang to outsider Carol Bartz and a new search engine from Microsoft (Bing) -- but now that it's here, it promises to change the face of the internet.

The pair will hold an estimated 28 percent of the search market, or roughly a third, behind Google, which will hold roughly two thirds of the market.  The deal will last much longer than previously speculated -- 10 years.

As previously anticipated, Microsoft's new Bing search engine/algorithm will be replacing Yahoo's search.  Yahoo's page will keep its look, but behind the scenes it will be powered by Bing.  Yahoo will focus on selling ads using Microsoft's AdCenter platform, which bids to challenge Google's AdWords.

The two companies predict that the deal will raise revenue by over $500M USD.

Yahoo CEO Carol Bartz cheered the deal, stating, "This agreement comes with boatloads of value for Yahoo!, our users, and the industry. And I believe it establishes the foundation for a new era of Internet innovation and development.  Users will continue to experience search as a vital part of their Yahoo! experiences and will enjoy increased innovation thanks to the scale and resources this deal provides.”

Bartz continued, “Advertisers will also benefit from scale and enjoy greater ease of use and efficiencies working with a single platform and sales team for premium advertisers. Finally, this deal will help us increase our investments in priority areas in winning audience properties, display advertising capabilities, and mobile experiences."

Steve Ballmer likewise was pleased by the deal, stating, "Through this agreement with Yahoo!, we will create more innovation in search, better value for advertisers, and real consumer choice in a market currently dominated by a single company.  Success in search requires both innovation and scale. With our new Bing search platform, we've created breakthrough innovation and features. "

Google has previously vowed to challenge any such deal on antitrust grounds.  The U.S. Department of Justice and the EU are currently considering the deal and will likely review it extensively in coming months.

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By rudy on 7/29/2009 9:54:26 AM , Rating: 2
IMO Bing is a better search engine then Yahoo, but that does not matter sometimes I will need to use 4 or 5 search engines to get what I want. Now if I go to yahoo I will probably get the same thing as bing so there is nothing of value to me in yahoo search any more. Like most tech mergers I doubt much good will come of this, most big tech mergers seem to turn into failed investments.

RE: dissapointing
By Hellfire27 on 7/29/2009 10:09:14 AM , Rating: 2
I bet you Yahoo got less than half of the offer they had a year ago; stupid Yahoo.

RE: dissapointing
By Murst on 7/29/2009 10:36:20 AM , Rating: 5
MS didn't buy anything, so there was no cash offer. MS will pay Yahoo something like 88% of the revenue from searches originating at Yahoo, while Yahoo will allow Microsoft access to its own search technology so that MS can improve Bing.

RE: dissapointing
By banvetor on 7/29/2009 10:54:31 AM , Rating: 5
This is the kind of info that should be in the article. Thanks Murst.

RE: dissapointing
By PARANOID365 on 7/29/2009 7:59:22 PM , Rating: 2
Ya Murst thanks for the great info. it was both enlightening, and informative, which is a welcomed change from the usual DT dribble.

Anyway, I also completely agree with banvetor, because this is definitely the kind of info. that should of been in the article to begin with, (instead of the usual flame bait crap).


I'm thinking that maybe DT should hire Murst, and he can attempt to clean up this place, (just a thought).

RE: dissapointing
By Hellfire27 on 7/29/2009 11:08:20 AM , Rating: 2
Ah, I didn't realize this. Thanks.

RE: dissapointing
By jojo29 on 7/29/2009 2:46:39 PM , Rating: 5
Well, we can kiss Yahoo goodbye, trust me, MS will slowly chip away at the Yahoo name and swallow yahoo into its own..and Bing is "okay", i don't use it, Google is still better, Google-it or Bing-it up?

RE: dissapointing
By Some1ne on 7/29/2009 3:20:31 PM , Rating: 2
How much have you actually used it? Bing is better than just "okay". Its web-search is roughly on-par with Google (though it's not quite as good at listing the most relevent sites first), its video search is somewhat better than Google's, and its image search puts Google to shame.

RE: dissapointing
By Lifted on 7/29/09, Rating: 0
RE: dissapointing
By Murst on 7/29/2009 4:17:41 PM , Rating: 2
Most people who are serious about having their sites indexed properly by the different crawlers provide a sitemap to each crawler. The tools to do this are easily accessible.

Both google and live have had this for a while ( I've never checked out Yahoo, but then again, I'm not very serious about this ).

RE: dissapointing
By 67STANG on 7/30/2009 2:40:20 AM , Rating: 3
Content isn't necessarily king with Google either. It places a HUGE weight on the # of external sites linking to your site and weights how many external sites are linking to the external sites that are linking to you-- and so on.

This is how Google manages to not only score the relevance of content on your site, but it's relevance with relation to the internet in general. Ever wonder how some of these supposed "SEO" companies work? They hire someone to spam message boards, blogs, and so on. This gets your external link count up, thus making your site more "relevant". "That'll be $5,000 please."

Google also makes sure to ignore/penalize sites that put tons of keywords in hidden tags and directly on the page. (a lot of people would type their keywords in 400 times then set the text color as the same color as the background color of the site). The Google bot can detect these instances and generally will REMOVE sites like these from the index alltogether.

There's a lot of other things they take into account, like clicks, analytics, site mentions in gmail, etc..

And yes, Microsoft's problem is that their crawler/bot is mildly retarded. It looks for internal links on crawled content rather than scanning the web directory itself. That's supposed to have been fixed with Bing though, who knows.

None of the above is really that hard to do, honestly. The algorithms to do this aren't really all that difficult. The difficult part is finding the money to buy the processing power, bandwidth and hard drives to handle all of the input.

By Smilin on 7/29/2009 10:53:20 AM , Rating: 3
Google may like us to believe that this should get anti-trust scrutiny but it really shouldn't. I'm sure regulators will take a look but not much beyond that.

MSFT could go on to partner with every other remaining search engine on the planet and they still wouldn't put a dent in Google's market dominance. This would be like MSFT complaining about desktop OS anti-trust if the Google chrome/android guys partnered with Redhat.

MSFT is going to have to win the market share the hard way. I think Bing shows they are ready to get started.

RE: Anti-Trust??
By smackababy on 7/29/2009 11:08:59 AM , Rating: 2
Google: This could threaten our monoploy on search and internet advertising.

EU: Well, if we let them, we can then fine them billions.

Google: Crap!

RE: Anti-Trust??
By lightfoot on 7/29/2009 12:09:36 PM , Rating: 5
It's only a matter of time until Google joins Microsoft and Intel as Europe's most profitable businesses.

(Profitable to Europe at least...)

RE: Anti-Trust??
By Murst on 7/29/2009 12:12:31 PM , Rating: 2
Apple might beat them to it with their iPod/iTunes products.

RE: Anti-Trust??
By Sazar on 7/29/2009 2:13:15 PM , Rating: 2
In Europe?

Apple currently is huge primarily in the US. Many of their gadgets don't do as well in Europe and Japan/Asia because other products have the same or better functionality with less red-tape.

RE: Anti-Trust??
By 67STANG on 7/30/2009 2:41:54 AM , Rating: 2
And because most people in Europe aren't as trendy/retarded as Americans.

I must be failing to grasp the concept....
By rtrski on 7/29/2009 10:14:36 AM , Rating: 2
I thought that Yahoo's "search" engine (the technology) was previously the one jewel in their crown - even if it was behind Google in market share, it was still ahead of Microsoft's. Previous deals balked because that was all MS really wanted while Yahoo wanted a full purchase (as well as squabbling over price). Yahoo was afraid MS would buy their search and leave essentially a hollow shell - a few home pages and peripheral web products like Maps and Flickr that overall weren't worth much. (Disclaimer: I am a Flickr user and rather like it, I just recognize that a photo/social hosting site alone doesn't support a huge company.)

But this deal slots Bing's engine behind the Yahoo search brand...which would appear to be backwards from all prior discussions?? Does the agreement include any cross-license of Yahoo-search technology which will be incorporated into Bing as well, or is MS that confident they leapfrogged Yahoo's search engine entirely?

Yes, I can do some research and read the detailed PR releases on both sides vs. posting here, and should. But my first reaction is confusion...

RE: I must be failing to grasp the concept....
By djcameron on 7/29/2009 11:36:03 AM , Rating: 2
I've completely switched over to Bing. I find that it provides better results with less garbage than either google or yahoo search. Google better be careful about opening up search engine anti-trust investigations, as they might find themselves the subject of scrutiny and fines.

RE: I must be failing to grasp the concept....
By Murst on 7/29/2009 11:52:43 AM , Rating: 2
I've switched to Bing as well. I find the results to be very similar, and I like the search history feature on bing, as well as those "detail" windows to the right of the search results.

I don't really like the Bing landing page, but I always search by typing the query into the address bar in the browser, thus avoiding that page.

For shopping, Bing is superior to Google in pretty every respect ( IMO ). An added benefit is the cash back program on Bing, and I already have a few dollars pending in my account.

By rtrski on 7/29/2009 3:19:44 PM , Rating: 2
Well, I have too, but that doesn't really apply to my post specifically. :)

In doing a little reading it seems MS was after Yahoo's search "eyeballs" or market-share all along, not the search 'technology'. So my misunderstanding was based on my earlier failure to comprehend. Both cleared up now, thanks!

In response to you though - I have found I have to disable AdBlockPro on Bing searches, or else the 'cashback' icons get supressed as ads. Cashback is a nice thing, saved almost $300 in only two purchases I would've made anyway.

That's the way it goes
By Kyanzes on 7/29/2009 12:02:05 PM , Rating: 1
To be honest, the only Yahoo provided service that I use is Yahoo Answers. It's not to say that it's a very high quality stuff or anything, but I still manage to find some usable info there time to time.

I could be way wrong here, and it's really a personal opinion really, but I think Yahoo made a bad choice by sticking to that portal like frontpage. When I want to search I need two thing:

- a form that accepts my request
- results

Everything else is bs.

RE: That's the way it goes
By Murst on 7/29/2009 12:04:01 PM , Rating: 2
RE: That's the way it goes
By Kyanzes on 7/29/2009 12:07:47 PM , Rating: 1
" "

That's overly complicated and long for a guy like me... :)

Why not make it the other way around? -> clean page with an input form -> everything else

RE: That's the way it goes
By Murst on 7/29/2009 12:11:16 PM , Rating: 2
I think a lot of people actually like the fact that you get a lot of content on the yahoo homepage.

If you're interested in only search, they do offer a page for that, but that's not what the majority wants ( that's my educated guess ). Yahoo is driving a lot of traffic to their other sites ( and their partner sites ) from their portal, which gives all of the other products more value.

I believe the most popular home pages are yahoo, aol, and msn. All of those are portals, and not search-only pages.

cartoon source
By Xenoterranos on 7/29/2009 12:06:26 PM , Rating: 2
I love how the source on the cartoon pic is MSNBC! Lols!

Dumb and Dumber
By sapiens74 on 7/29/09, Rating: 0
"This week I got an iPhone. This weekend I got four chargers so I can keep it charged everywhere I go and a land line so I can actually make phone calls." -- Facebook CEO Mark Zuckerberg

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