Yahoo! and Microsoft finalize search deal

Yahoo! and Microsoft announced today that they have finalized their search deal that will replace the existing Yahoo! search engine, and implement Microsoft's Bing search engine. The press release by Yahoo! and Microsoft confirmed that the deal made in July of this year is now final.

The deal entails that Microsoft will acquire an exclusive license over Yahoo!'s core search technologies. The deal set out will last for ten years and will replace Yahoo!'s search. Microsoft will have the ability to incorporate Yahoo!'s current technologies into Bing.

The deal will come into full effect within the next three to six months, effectively increasing Bing's market share.

The companies released a joint statement,
"Microsoft and Yahoo! believe that this deal will create a sustainable and more compelling alternative in search that can provide consumers, advertisers and publishers real choice, better value, and more innovation.

"Yahoo! and Microsoft welcome the broad support the deal has received from key players in the advertising industry and remain hopeful that the closing of the transaction can occur in early 2010."

The deal for Microsoft to acquire Yahoo! has taken more than two years, including rumors of Microsoft purchasing the entire company. The talks eventually came to a search deal that would take Yahoo! off the market to help Microsoft compete against Google's dominate hold on the market.

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33 Comments

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Every 1% of search market = roughly 1 billion in revenue, So even if Bing only holds at 3%(not sure where it is now), that's still pulling a lot of money in for Microsoft.

"The deal will come into full effect within the next three to six months, effectively increasing Bing's market share."

What do mean by "full effect"? I thought this would take more than a year for Bing to integrate Yahoo data & technology into Bing and for Yahoo to update their site to use Bing. 3 to 6 months would be a major feat. Generally, I am very pleased with the direction Bing is going.

I love Microsoft and I would be using bing! if it didn't suck. But it does and I use google search. Microsoft, you need to fix this.

Also, gmail has many moar features than live mail, but i do still use live mail.

Would have been cool to see what microsoft could have done with flickr and stuff but ahwell better then nothing i suppose for yahoos sake.

Digix said,
Would have been cool to see what microsoft could have done with flickr and stuff but ahwell better then nothing i suppose for yahoos sake.

Yeah, it would have been interesting. Yahoo has really dropped the ball in a lot of areas... It's amazing really...

Who's to say this is over? It's a 10 year deal but I figure later on MS will just pick up the chunks of Yahoo it cares about (the yahoo tech is what it wanted more, not just the sites), then whatever is left with little or no value will be left and sooner or later closed off.

Pharos said,
Wow... Bing is growing, really really fast.

I wonder if Google is concerned.

Not really since Bing was launched Bing gained market share at first but then it fell again overall its just about above where it started, and anyways Yahoo's market share has been falling for some time.

thealexweb said,

Not really since Bing was launched Bing gained market share at first but then it fell again overall its just about above where it started, and anyways Yahoo's market share has been falling for some time.

Where are you getting that information from? I'm not seeing any "falls" on comScore's October report.

thealexweb said,

Not really since Bing was launched Bing gained market share at first but then it fell again overall its just about above where it started, and anyways Yahoo's market share has been falling for some time.

I've not heard of any "fall" either. Bing has been pretty consistent in it's growth actually. This deal should help even more.

Pharos said,
Wow... Bing is growing, really really fast.

I wonder if Google is concerned.


I doubt it, I can never find what I want with bing, and google always gives me what I'm looking for.

bing = pretty and useless
google = a proper search engine that works!

dvb2000 said,


I doubt it, I can never find what I want with bing, and google always gives me what I'm looking for.

bing = pretty and useless
google = a proper search engine that works!


Funny, I find what I want with Bing 98% of the time.

thealexweb said,
The EU have still to agree, if they don't this deal can't go through.


The EU is a bunch of crap come to USA telling us what we can do..

thealexweb said,
The EU have still to agree, if they don't this deal can't go through.

I don't think so... Microsoft and Yahoo are both US companies... What jurisdiction does the EU have?

please get it right - the new name will be binGOO! (not bingHOO)

and when goole takes them over they will become binGOOgle (or maybe just bingle)

M_Lyons10 said,
I don't think so... Microsoft and Yahoo are both US companies... What jurisdiction does the EU have?

They both operate in Europe so have to abide by the local laws.

dvb2000 said,
please get it right - the new name will be binGOO! (not bingHOO)

and when goole takes them over they will become binGOOgle (or maybe just bingle)

lol

M_Lyons10 said,
I don't think so... Microsoft and Yahoo are both US companies... What jurisdiction does the EU have?

Doesn't matter, EU may have no say what MS and Yahoo do in the US but if they want to offer their services in Europe, it must be passed by the EU.