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Full Version: Microsoft, Yahoo in 10-year Web search partnership
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can really join forces beat a powerhouse like Google?

Quote:SAN FRANCISCO/SEATTLE (Reuters) - Microsoft Corp and Yahoo Inc have launched a 10-year Web search deal to challenge market leader Google but stopped short of combining other advertising businesses or suggesting any deeper ties.

The long-expected deal means Microsoft's new Bing search engine will be combined with Yahoo's experience attracting advertisers in the first serious threat to Google Inc -- if the companies get regulatory approval and can make the partnership work.

Yahoo shares fell 12 percent as some investors were disappointed by the limited scope of the deal, which did not include up-front payments for Yahoo. Some investors had expected up to $3 billion up-front, according to a Bernstein report.

"I would have preferred more money," said Ryan Jacob, chief investment officer of Jacob Asset Management, pointing to the lack of an upfront payment, as well as revenue-sharing and cost-savings terms that were not as high as he expected.

"There are risks on both sides. Big deals like this tend not to work out. It's a long-term deal that's going to take a long time to implement," said Jacob, whose $40 million fund holds some Yahoo shares. "It's better than no deal."

Microsoft shares closed up 1.4 percent, while Google shares fell 0.8 percent.

Yahoo estimated the deal would boost its annual operating income by about $500 million and yield capital expenditure savings of $200 million. Yahoo also expects the deal to boost annual operating cash flow by about $275 million.

ANTITRUST OBSTACLE

Under the deal announced on Wednesday, Microsoft's Bing search engine will power search queries on Yahoo's sites. Yahoo's sales force will be responsible for selling premium search ads to big buyers for both companies.

The partnership poses only a theoretical challenge to Google at present. It could take two-and-a-half years to get approval and be fully implemented, according to Yahoo Chief Executive Carol Bartz, which would mean the partnership would not be fully effective until early 2012.

Microsoft and Yahoo still face antitrust and privacy issues. Google dropped a planned search partnership with Yahoo last year under pressure from the U.S. Justice Department.

But experts said the deal would likely get the go-ahead after examination by Obama administration antitrust officials since it would create a stronger rival to market leader Google.

Google said only that it was "interested" in the deal, while the chairman of the U.S. Senate antitrust panel said it warrants "careful scrutiny."

Microsoft and Yahoo expected the deal to be "closely reviewed" by regulators, but they were "hopeful" it could close in early 2010.

The deal concludes a lengthy, and at times contentious, dance between the two companies. They have been in on-again, off-again talks since Yahoo rebuffed Microsoft's $47.5 billion takeover bid last year.

source: reuters
lol I seen this on fox news today

Google For the win

always
yeah <3

yahoo and microsoft are both spoon services...
To be honest, I hope they do pose some threats to Google.  Lack of competition is generally not a healthy thing for the market.  With Google ruling the search engine market, it can practically do what it wants, like a dictatorship.
Microsoft and Yahoo do have quite a bit of power behind them, despite what you may think, though beating Google is going to be difficult.
Google for the win. Bing and Yahoo suck. Bing and Yahoo together still suck.
so will they merge the words Bing and Yahoo to "Bingoo!"? lol
YoYoBallz Wrote:lol I seen this on fox news today

Google For the win

always

hell yea!
ZiNgA BuRgA Wrote:To be honest, I hope they do pose some threats to Google.  Lack of competition is generally not a healthy thing for the market.  With Google ruling the search engine market, it can practically do what it wants, like a dictatorship.

I completely agree with that. I mean as a consumer, competition can only mean good, no bad. Competition will drive both sides to improve, innovate and become better. The law of nature, survival of the fittest, drives evolution and growth.

As an example, if Firefox, Opera, Netscape, Chrome, and the rest of the other browsers didn't exist, wee'd all still be stuck on IE6 (actually, something much worse) with it's chocolatety security and very limited features. Microsoft would have no incentive to improve it's IE because there's no other alternatives, because 100% of the people will use it regardless of whether if they improve or not.
Assassinator Wrote:
ZiNgA BuRgA Wrote:To be honest, I hope they do pose some threats to Google.  Lack of competition is generally not a healthy thing for the market.  With Google ruling the search engine market, it can practically do what it wants, like a dictatorship.

I completely agree with that. I mean as a consumer, competition can only mean good, no bad. Competition will drive both sides to improve, innovate and become better. The law of nature, survival of the fittest, drives evolution and growth.

As an example, if Firefox, Opera, Netscape, Chrome, and the rest of the other browsers didn't exist, wee'd all still be stuck on IE6 (actually, something much worse) with it's chocolatety security and very limited features. Microsoft would have no incentive to improve it's IE because there's no other alternatives, because 100% of the people will use it regardless of whether if they improve or not.
QFT
Also saying something sucks before even knowing what it is or trying it out sucks
Assassinator Wrote:
ZiNgA BuRgA Wrote:To be honest, I hope they do pose some threats to Google.  Lack of competition is generally not a healthy thing for the market.  With Google ruling the search engine market, it can practically do what it wants, like a dictatorship.

I completely agree with that. I mean as a consumer, competition can only mean good, no bad. Competition will drive both sides to improve, innovate and become better. The law of nature, survival of the fittest, drives evolution and growth.

As an example, if Firefox, Opera, Netscape, Chrome, and the rest of the other browsers didn't exist, wee'd all still be stuck on IE6 (actually, something much worse) with it's chocolatety security and very limited features. Microsoft would have no incentive to improve it's IE because there's no other alternatives, because 100% of the people will use it regardless of whether if they improve or not.



Also, I actually like Bing... especially its video search.
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