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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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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.

"Folks that want porn can buy an Android phone." -- Steve Jobs

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