Microsoft and Yahoo! Come Together

A year ago, a Microsoft-Yahoo! deal was rumored for months on end. The rumors eventually died out, but resurged recently, and have become official. Neither search engine will be taken over by its counterpart, this is a collaboration between the two search engines. While Google tops the two, they are hoping to foster some innovation and competition. The deal is a ten-year agreement. According to recent reports, the deal includes, but is not limited to:

• Microsoft will acquire an exclusive 10 year license to Yahoo!’s core search technologies, and Microsoft will have the ability to integrate Yahoo! search technologies into its existing web search platforms.

• Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers. Self-serve advertising for both companies will be fulfilled by Microsoft’s AdCenter platform, and prices for all search ads will continue to be set by AdCenter’s automated auction process.

• Each company will maintain its own separate display advertising business and sales force.

• Microsoft will compensate Yahoo! through a revenue sharing agreement on traffic generated on Yahoo!’s network of both owned and operated (O&O) and affiliate sites.

Marcel Media’s own SEO team offers insight into this agreement. SEO Specialist, Nick Welch states, “This move will give advertisers a single ad serving platform that will, when combined, grab around 30%+ of the search market. That coupled with Microsoft and their substantial marketing push for Bing should yield an even higher return for both companies.” Account Coordinator, Brent Ludtke adds, “consolidating their search efforts means that both companies can invest money into one engine and ad serving platform. Each company is playing to their own strengths, with Yahoo being more sales/customer service oriented and Microsoft being more technical”.

How do you see this deal working out?