Microsoft, Yahoo! Deal approved by U.S. and European Commission

The European Commission and US Department of Justice have both approved a Microsoft and Yahoo! deal that will see the software giant acquire the internet search and search advertising businesses of Yahoo!.

In a statement on Thursday, the European Commission (EC) concluded that the market shares of both Microsoft and Yahoo! were limited. "In the EEA, Microsoft's and Yahoo!'s activities in internet search and online search advertising are very limited with combined market shares generally below 10%. Google, by contrast, generally enjoys market shares above 90%" said an EC spokesperson.

"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" said both companies in a joint statement.

Microsoft and Yahoo! both announced the deal in July 2009, seeking closure and approval for the deal in early 2010. In the coming months, Yahoo! search results will be provided and branded with Bing, "powered by Bing" will likely begin to appear. The term of the agreement is 10 years but each company will maintain its own separate display advertising business and sales force. Rumours that the company would receive European approval circulated last week and many analysts forecast Thursday as the approval date.

Microsoft CEO Steve Ballmer was upbeat about the deal approval. “Although we are just at the beginning of this process, we have reached an exciting milestone,” Ballmer said. “I believe that together, Microsoft and Yahoo! will promote more choice, better value and greater innovation to our customers as well as to advertisers and publishers.”

Yahoo! provided additional information about the coming integration. In a blog posting, Shashi Seth, Senior VP of Yahoo!'s Search Products confirmed that basic search listings and ads will be provided by Microsoft. "Yahoo! will continue to enhance the search result listings as we do for people today" he said.

Seth also confirmed Yahoo! will create ways to find things faster using Search Assist technology and weaving search more deeply into other Yahoo! products. Yahoo! also said it would allow users to explore search results better by providing otpions for organizing search results pages or by showing users interesting search topics based on search results. Productivity apps and other tools for search improvements are also expected to be in the works.

Both companies also launched searchalliance.com where they will detail their progress and provide updates for partners and Yahoo! users in the near future.

Report a problem with article
Previous Story

Silverlight/XNA confirmed as developer frameworks for Windows Phone 7

Next Story

Amazon launches Kindle for BlackBerry app

16 Comments

Commenting is disabled on this article.

bolix said,
Remember when Yahoo used Google's search engine
I didn't, but a quick search came up with this right near the top http://www.neowin.net/news/main/04/02/18/yahoo-dumps-google-search-technology

Remove there "search" function and the stuff that's left Microsoft has duplicate online services of, Yahoo Mail (Windows Live Mail), flicker (Window Live Photo Gallery), Yahoo Messenger (Windows Live Messenger), etc. They may not buy the rest of it if MS was just going after the search portion.

What does this mean for OpenDNS as they use Yahoo search, will it be changed to bing or will they swap to google? Be interesting to see.

So it will be Yahoo search powered by Bing. Thought they would just swap it. Guess that might be too much of a sudden change for users.

Does anyone else think MS will eventually just buy all of Yahoo later down the line ?

WooHoo!!! said,
So it will be Yahoo search powered by Bing. Thought they would just swap it. Guess that might be too much of a sudden change for users.

Does anyone else think MS will eventually just buy all of Yahoo later down the line ?


Microsoft already tried to buy Yahoo, but were rejected.

M2Ys4U said,

Microsoft already tried to buy Yahoo, but were rejected.

But Yahoo is much much weaker now, smaller search market share, lower share price, almost defiantly they will try again in the future.

M2Ys4U said,

Microsoft already tried to buy Yahoo, but were rejected.

That was then though, if going through the front door doesn't work, try the back. This is what MS is doing now. It only really ever wanted yahoos tech, which it's getting in this deal, if later on it grabs a few value websites that'd be nice.

thealexweb said,
Woop, but still doesn't the American regulator have to clear it?

According to AP the US has also approved it http://twitter.com/BreakingNews/status/9288856008

Edited by M2Ys4U, Feb 18 2010, 4:24pm :