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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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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.

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