Microsoft and Yahoo Teamed Up To Compete With Google
Microsoft Inc. and Yahoo! Inc. announced their 10 year mutual agreement deal today for internet search partnership. The main reason behind their partnership is to give the search engine giant Google a beating in their dominance of web search.
In this deal the microsoft’s latest search engine Bing will gear up the yahoo website and in return yahoo will play a role of advertising sales team for Microsoft’s online service offerings.
According to Mr. Steve Ballmer (CEO of Microsoft) Bing is a comprehensive search engine and it is nowhere less than Google. He stated “Microsoft and Yahoo know there’s so much more that search could be. This agreement gives us the scale and resources to create the future of search.” He also added that “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. Microsoft and Yahoo know there’s so much more that search could be. This agreement gives us the scale and resources to create the future of search”
With this mutual alliance Yahoo! is having strong chance to get out of their financial crisis as yahoo will get 88% of revenues generated from advertisements on its site for next five years. After the announcement came in the Yahoo!’s stock plunged as much as 12% whereas Microsoft’s stock is trading higher by 1%.
Last year Microsoft made an offer to buy Yahoo! with $47.5 billion, but wthe deal was not carried out successfully because Yahoo’s CEO asked for higher bid. Microsoft is annoyed with the dominace of Google in the web search space.
Google bangs Microsoft from time to time by introducing various applications such as Google Chrome which is developed to compete with Microsoft’s Internet Explorer. As per the latest media releases Google is now set to launch its own Operating System, which it will distribute free under GPL. As per google officials the Operating System which they’re developing is way too fast then Microsoft’s.