Microsoft's Yahoo deal cleared, implementation to start soon |
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Microsoft's Yahoo deal cleared, implementation to start soon
Breaking News: Microsoft and Yahoo just announced that regulators in the U.S. and Europe have given clearance to their alliance, setting the stage for them to join forces in an attempt to pose a more credible threat to Google in the Internet search business.
"Implementation of the deal is expected to begin in the coming days and will involve transitioning Yahoo!’s algorithmic and paid search platforms to Microsoft, with Yahoo! becoming the exclusive relationship sales force for both companies’ premium search advertisers globally," the companies said in a joint statement. "Once the transition is completed, the companies’ unified search marketplace will deliver improved innovation for consumers, better volume and efficiency for advertisers and better monetization opportunities for web publishers through a platform that contains a larger pool of search queries."
Although the implementation is beginning, the process will still be relatively gradual. The companies say they've set a goal of completing the transition of the algorithmic search platform in the U.S., at least, by the end of the year.
In addition, they say, "The companies also hope to make significant progress transitioning U.S. advertisers and publishers prior to the 2010 holiday season, but may wait until 2011 if they determine that the transition will be more effective after the holiday season. All global customers and partners are expected to be transitioned by early 2012."
The companies announced plans for the alliance last summer, following Microsoft's long and ultimately unsuccessful bid to acquire Yahoo outright. By assuming responsibility for search queries made on Yahoo's sites, Microsoft is aiming to give advertisers a larger and more credible market, and achieve the critical mass needed to make its own search results more relevant.
Yahoo, meanwhile, says the deal will free it up to "focus on providing a compelling and innovative search experience," while leaving to Microsoft the role of developing the underlying search technology.
Microsoft's Bing search engine has risen to more than 11 percent of the U.S. market since its launch last year, but Yahoo has fallen at the same time, to around 17 percent, according to the latest data from the comScore Networks research firm. Their combined market share of 28 percent in the U.S. still pales in comparison with Google's share of more than 65 percent.
Follow-up: Chart: New era, same uphill climb for Microsoft, Yahoo vs. Google
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