July 29, 2009

Microsoft Yahoo Agreement

Microsoft and Yahoo Reach Deal on Search Partnership by Steve Lohr, New York Times (July 29)

Finally an agreement between Microsoft and Yahoo. Yahoo will use Microsoft search engine (Yahoo search will say "powered by Bing") and keep its own web services (finance, news, email etc). Microsoft will use Yahoo's search advertising for premium search advertisers, while keeping its own ad center for smaller customers.

"Under the deal’s terms, the advertising work will be split. Yahoo will be the exclusive ad force for premium search advertisers who bargain to negotiate deals. But the Microsoft Ad Center automated search market will be used for smaller customers, whose prices for search advertising are set by an automated auction process."

Agreement is for 10 years. Full implementation is expected within 24 months after regulatory approval. Should start to see changes in 2010.

Also Microsoft, Yahoo! Change Search Landscape, press release (july 29)


Of interest - A Search Eulogy For Yahoo by Danny Sullivan, Search Engine Land.

Tells the history and the analysis of how search leader Yahoo folded its cards to concentrate on other assets and abandon search.

Links to more coverage.

Posted by Gwen at July 29, 2009 05:18 PM