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As Featured on Sunday Times

Jul

Yahoo-Microsoft alliance is official

Filed in: Make Money Online by admin on 07-29-09

Yahoo and Microsoft has agreed to a 10-year agreement

Yup the two corporation giant has agreed to a 10-year agreement, pending regulatory approval. This means Microsoft’s Bing will become the Internet search service on Yahoo, while Yahoo will sell advertisements behalf of both Microsoft and Yahoo.

Microsoft’s chief executive, Steve Ballmer told media, “I got an opportunity to swing for the fences in search.”

What would this mean then from this alliance. Well it could see the rise of Microsoft’s share of online searches to nearly 30% from just over 8.4 per cent. But of course Google is still topdog with 65 per cent of the market share. Still at 30 per cent market share, the MicroHoo deal would make them an ideal alternative to advertisers.

Former CEO of search engine Lycos was quoted, “The pieces are all there. Microsoft has a great product already developed. Yahoo has a massive audience”.

Yahoo will take 88 per cent of search ad sales revenue for the first five years instead of receiving an up-front payment now, where they rebuffed Microsoft’s $58.4 billion takeover bid last year. The companies said they expect the deal to be “closely reviewed” by regulators, but were hopeful it can close in early 2010.

Jason Calacanis, of Mahalo.com and Weblogs, Inc. which was sold to Time Warner’s America Online for $30 million, shared his opinion on the pact, “Yahoo committed seppuku (Japanese ritual suicide by disembowelment) today. The once proud warrior of the internet space laid down its sword, knelt at the feet of Microsoft and gutted itself today. There was no honor in this death, it was one brought by the shame of losing to Google and a lack of faith in one’s ability to compete in the space they created. To be clear, Yahoo didn’t need to do this deal, Microsoft did. Ultimately Yahoo will look back at this moment as the second–and perhaps fatal–mistake in their epic history.”