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Business News Deals Digital
Yahoo and Microsoft ally
By CMU Editorial | Published on Thursday 30 July 2009
So, an alliance between Yahoo! and Microsoft has finally been confirmed. The two companies have been discussing possible partnerships for ages now of course, including, at one point, the previously reported discussions for Microsoft to completely acquire Yahoo!
The ten year deal that has been done is somewhat less far reaching. It will see Yahoo! use Microsoft’s recently rebranded Bing search engine on its sites, rather than its own search whatnot, while Yahoo’s advertising division will handle search-related ad sales for both company’s online operations.
The deal will be subject to regulatory approval, and it’s thought Google may object, though they will still dominate in the search sector. While Bing will have 35% of the US search market once it is installed on the Yahoo! platform, Google still have a 65% market share.
Microsoft and Yahoo! are sure to argue that by boosting Bing’s prominence though this alliance, they are making the web search sector more rather than less competitive.
