RIP Yahoo! – Microsoft Deal

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Microsoft has tried for the last 3 years to come to an arrangement with Yahoo! Even with a soured relationship from a failed hostile take over the deal is done. Microsoft struck a deal with Yahoo! to power the search on all their sites. This is a sad day; we have moved one step closer to only having one search engine.


Yahoo! have agreed to a deal which will cut their costs by not having to develop and maintain search technology. Both Yahoo! and Microsoft will share advertising revenue, but most significantly is that according to Comscore Microsoft’s Bing will now control 28% of the search engine market.

With Microsoft’s $100 million advertising campaign and an additional 20% market share from Yahoo! is this enough to significantly challenge Google?

  • Peter Crowe

    I disagree with “we have moved one step closer to only having one search engine”

    This is a move that will create better competition – not less.

    Yahoo! search is a very valuable asset to Microsoft. As a result of the deal they will have more query share to learn and leverage from, more efficiencies and scale in generating revenue and less costs. Combined with their focus on building a better product and their deep pockets Google now have a more competitive market.

    It may or may not work but Microsoft has a better chance than they did before the deal.