“Microsoft and Yahoo reached a long-awaited partnership Wednesday in a bid to challenge Google’s dominance in online search,” David Goldman reports for CNNMoney.
“Under the 10-year deal, Microsoft will integrate Yahoo search technology into its existing Web search platforms. Microsoft’s new search tool, Bing, will power Yahoo sites. Yahoo will sell premium ads on both sites,” Goldman reports. “Microsoft and Yahoo will share revenue on traffic generated on Yahoo’s network.”
“‘The deal will allow Microsoft to “create more innovation in search, better value for advertisers and real consumer choice in a market currently dominated by a single company,’ said Steve Ballmer, Microsoft chief executive, in a statement,” Goldman reports.
MacDailyNews Take: Thank Jobs for Apple’s Mac which offers real and superior choice and value for customers through actual innovation (actions, not just words) in the personal computer market that was once almost totally dominated by a single, derivative company. Google earned their market dominance. Microsoft stole it. Now, thanks to Apple’s relentless drive, not desperate deals, Microsoft is in the process of losing it.
Goldman continues, “It was a partnership that was a long time in the making. Microsoft’s search market share has been slipping for more than two years, and the company has struggled to make its online advertising unit profitable. Meanwhile, Yahoo, once the search market leader, dropped to a distant second place behind leader Google by 2007.”
Full article here.
[Thanks to MacDailyNews Reader “Crabapple” for the heads up.]
DOA baby
So Microsoft, who already had MSN search, spent gobs of money on research in order to deliver Bing, but is now entering into a deal with yet another search entity, Yahoo. Perhaps they could also try and go after Lycos, Excite and Altavista…?
Who knows? M$’s fear of its doom might finally give a start for making “good enough” work?
Never say never… Maybe something could come out of it…
So, number two and three combine to make a slightly more powerful number two? Am I missing something here? Why would you tie your boat up to another sinking ship? I don’t have a problem with Yahoo but this really doesn’t make any business sense for Microsoft. Oh well. May Ballmer stay in charge of Microsoft for as long as possible.
After 10 years, Microsoft will have pilfered whatever whatever Yahoo has to offer and will leave Yahoo out to dry. Really stupid move for Yahoo. Either sell the whole damned thing to Microsoft and watch them die a slow death or don’t do a deal at all.
I’m really glad to see that the Bing acquisition is working out for them…
Does this deal mean that Bing is already a failure?
funniest line?
“real consumer choice in a market currently dominated by a single company,’ said Steve Ballmer”
How can he say that with a straight face? Oh wait! Any half decent used car salesman can lie out of both sides of his mouth, and keep a straight face!
I swear to good that tool never actually thinks before he speaks. Or he is in the dreamworld that used to be, when all things MS were accepted as Holy Writ. Oh wait, a tool has a use.
This “deal” sounds really confusingly worded. If I’m reading it right, Microsoft will have Yahoo search on their sites, and Yahoo will have Bing on their sites. How does that make sense, exactly?
It also sounds like MS and Yahoo will be double-counting their search traffic as a result – a search on Bing will count as a search on Yahoo, and vice versa. Which would skew the numbers away from Google in their favor, but would do nothing to change peoples’ actual search habits.
I can’t see how Yahoo comes out ahead with this, as now Yahoo search is added to Bing on my list of search engines to avoid completely. And this has to put some strain on Apple’s various deals with Yahoo too.
@ macaholic – Sheesh… yeah, Ballmer has been making hypocritical statements like that for a while now. I think he started with those comments in relation to cell phone platform too. As Microsoft’s power continues to dwindle, though, eventually someone’s going to call him on those kinds of statements.
Another part of that quote that jumped out at me: The deal will allow Microsoft to “create more innovation in search, […]”
Translation from Microsoftese to English: “create more innovation” = “create customer lock-in”. Though how they plan to do that with search remains to be seen.
“According to Microsoft Chief Executive Steve Ballmer, the deal will allow Microsoft to “create more innovation in search, better value for advertisers and real consumer choice in a market currently dominated by a single company.”
Be careful what you wish for Ballmer.
Two drowning companies grasping for dear life. In the end, they will drown each other.
@qka
Exactly
While Yahoo might as well just close up shop as Microsoft will not steal every technology and property Yahoo has and the Yahoo users will flee to Google by the millions. After all who wants Microsoft to know what they are searching for? Having Google know is bad enough but Google doesn’t also control the user’s OS that is on the computer. If Microsoft wants to do search advertising they need to split that off as an independent company from the rest of Microsoft and make them independent. As long as Microsoft tries to keep their Internet search ad business internal to Microsoft it will be a hugh failure. The Microsoft search ad deal with Yahoo will be the death of Yahoo in less then 24 months. If you got Yahoo Stock or accounts you should dump them now while they are worth a little something.
Microsoft will not steal every technology and property Yahoo has
that should have been
Microsoft will now steal every technology and property Yahoo has
Ballmer, you keep using that word “innovation.” i do not think it means what you think it means.
“The deal will allow Microsoft to “create more innovation”
That line jumped out at me as well–
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but
I thought it a little “oxy-moronic” – tho
@Inigo Mactoya
Bravo! Best witty response this month!
For those too young to understand, go see the movie “The Princess Bride”
Okay, time to stop using Yahoo! and look for another search engine.
@goddess – I had exactly the same thoughts upon reading that phrase.
Peace.
You lot are tho cwule!
“Inconcievable” was the word… (or: “You killed my father. Prepare to die”).
I feel sorry for Yahoo. But I guess they had it coming.
I never knowingly use Yahoo search and the times I’ve used MSN search has been frustrating.
“Inconcievable” was the word… (or: “You killed my father. Prepare to die”).
Actually I believe the word was “Inconthievable”. LOL
Do two losers make a winner?
Amazing how MS can still get away with this kind of business deals. Billions blown year after year on products and initiatives that a normal company would drop if unprofitable. Yet MS can keep pumping money funded by its monopoly till it finally catches up, overwhelms and dominate that sector.