Yahoo & Microsoft In A Search Ad Partnership
Yahoo & Microsoft
The software giant Microsoft and the very popular search engine, Yahoo, have reached a 10-year deal in which they hope to tackle the online dominance of Google.
According to the deal Microsoft's new search engine will be used on the Yahoo sites. Yahoo will also handle some advertising sales for Microsoft. The two companies will share search-related advertising revenue.
"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," Yahoo Chief Executive Officer Carol Bartz said.
Currently, about 65% of the US Internet search market is controlled by Google, with Yahoo at a distant second 19.6% and Microsoft third with 8.4%.
Microsoft had almost bought Yahoo for $47.5 billion last year, but the move was ruined at the last minute by the resignation of the Yahoo co-founder and chief executive Jerry Yang.
Microsoft has since refused to revive the buyout offer, but Yang's successor, Bartz, confirmed in May that the two companies were holding talks on search collaboration.
The agreement between Microsoft & Yahoo comes just weeks after Microsoft launched its new search engine, Bing, which has been widely praised as a worthy competitor to Google.