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Yahoo to embrace Microsoft's Bing
Techtree News Staff, Jul 29, 2009 1504 hrs ISTUnder Microsoft-Yahoo rumored ink search deal
Microsoft and Yahoo's deal musings have been talked about and chewed a lot since last year. Now, Microsoft and Yahoo are pretty close to signing search deal that will let Yahoo use Microsoft's Bing as its default search engine. So, this means that Bing will replace Yahoo Search. This buzz started off from AdAge that claimed to have news from sources familiar with the situation. Microsoft would be eager to hear from Yahoo as this deal would be more about revenue sharing rather than transfer of massive funds as acquisition or something similar. As per online reports, the deal would be officially announced sometime today.
In March, Carol Bartz joined as CEO of Yahoo had major organization restructuring in the company and Microsoft showed its keen interest to reconsider the search partnership deal. After that, Microsoft got busy in rolling out of its new search engine called Bing. Bing might not be as cool and powerful as Google search engine but it surely does have potential to grow over period of time. And now, Microsoft-Yahoo's search deal has been inked which will replace Yahoo Search with Microsoft's search Technology. No clarity is available on whether the new search Yahoo Search would be branded as 'powered by Bing'.
With Yahoo embracing Microsoft's search technology, it would quite interesting to see if any changes in search market shares takes place for either Yahoo or Microsoft. If Bing's search engine technology is being used for powering Yahoo Search then pressure on Bing to get better might escalate. Also, Microsoft would be happy to get more Yahoo Search to Bing switching audience. Those using Yahoo search as a second option after Google would be considered as target audience as well. It's win-win situation for Microsoft.
Sources close to the situation stated that Yahoo would keep 110 percent of all revenue till two years and in the third year, Yahoo would keep 90 percent revenues stated Kara Swisher, who writes BoomTown column at AllThingsD. But there isn't any detail about upfront payments from Microsoft to Yahoo.
Eventually, what both Microsoft and Yahoo aim to do is earn Google's bear share in the online search market and also earn billions with search engine marketing. Doubts whether Bing will replace Yahoo Search or only power it will be cleared when both companies announce the deal officially.
In March, Carol Bartz joined as CEO of Yahoo had major organization restructuring in the company and Microsoft showed its keen interest to reconsider the search partnership deal. After that, Microsoft got busy in rolling out of its new search engine called Bing. Bing might not be as cool and powerful as Google search engine but it surely does have potential to grow over period of time. And now, Microsoft-Yahoo's search deal has been inked which will replace Yahoo Search with Microsoft's search Technology. No clarity is available on whether the new search Yahoo Search would be branded as 'powered by Bing'.
With Yahoo embracing Microsoft's search technology, it would quite interesting to see if any changes in search market shares takes place for either Yahoo or Microsoft. If Bing's search engine technology is being used for powering Yahoo Search then pressure on Bing to get better might escalate. Also, Microsoft would be happy to get more Yahoo Search to Bing switching audience. Those using Yahoo search as a second option after Google would be considered as target audience as well. It's win-win situation for Microsoft.
Sources close to the situation stated that Yahoo would keep 110 percent of all revenue till two years and in the third year, Yahoo would keep 90 percent revenues stated Kara Swisher, who writes BoomTown column at AllThingsD. But there isn't any detail about upfront payments from Microsoft to Yahoo.
Eventually, what both Microsoft and Yahoo aim to do is earn Google's bear share in the online search market and also earn billions with search engine marketing. Doubts whether Bing will replace Yahoo Search or only power it will be cleared when both companies announce the deal officially.
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