MS, Yahoo Combined to take on Google

After so many discussions, Microsoft and Yahoo have finally joined their hands on Wednesday 29, July 2009 and come together in Internet search market to take on Google which is the biggest search engine in the world and has more than 60% share in the search market.

Now, the search market will see the progress of this tie-up for at least 10 years as the 10 year agreement has been established between both companies. Microsoft will now handle or run Yahoo’s search engine and Yahoo will handle online advertising for Microsoft.

Microsoft will have a 10-year agreement to Yahoo’s core search technologies which would also enable the software giant to integrate Yahoo’s search technologies into its existing platforms which includes its newest search engine, Bing. Using such a search system proves expensive and searches through the Bing technology infrastructure, Microsoft can now filter more searches.

Microsoft had made a deal last year where it bid $47.5 billion to buy Yahoo but ultimately that offer was rejected by Yahoo and its collapse changed a management. Co-founder Jerry Yang was replaced by Carol Bartz who is now Yahoo’s chief executive.

Microsoft and Yahoo who are the No 3 and No 2 providers of search, together will have about 28% of traffic in the United States. Microsoft’s chief executive, Steven A Ballmer said that through this agreement with Yahoo, they will create better value for advertisers, more innovation in search and real consumer choice in a market which is currently dominated by a single company.

Now, the questions arise in everybody’s mind:

Will the combination of Microsoft and Yahoo be powerful?

Will the agreement between Microsoft and Yahoo be able to continue after 10 years?

Will a new search engine, Bing be the biggest search engine in the world?

Will the motive of both Microsoft and Yahoo be able to let down the market of Google?

To see the answers of these questions, you have to wait till coming year. Good Luck!! to Microsoft and Yahoo.