Microsoft and Yahoo to take on Google
Microsoft and Yahoo have struck a deal in order to break the unchallenged monopoly of Google. Both companies have announced partnership in the areas of Internet searching and advertising.
GOOGLE IS likely to face stiffer competition as Microsoft and Yahoo struck a deal on Wednesday (July 29). Last year, Microsoft made an abortive attempt to purchase Yahoo at a cost of US$47.5 billion. After this failure, the two companies tirelessly worked to come together to break the unchallenged monopoly of Google; the current pact is the result of this effort. On Wednesday, they announced a partnership in Internet searching and advertising. Hitherto, Google enjoys virtually a lion’s share in this field and no one company poses a serious challenge to the search-engine giant. This deal is an attempt to pose a challenge to Google in this area. At present, Microsoft and Yahoo constitutes only a 28 per cent share in the search engine market while the remaining 72 per cent goes to Google.
This pact (Microsoft-Yahoo pact) stipulates division of duties instead of merger of these two companies, which was the main reason of last year’s fiasco. This fiasco led to a management change in Yahoo. The co-founder of Yahoo, Jerry Yang, was replaced by Carol Bartz. Bartz is now the chief executive officer of Yahoo. According to information available, Microsoft would provide search technology to Yahoo websites and Yahoo will now concentrate on producing web media sites ranging from sports and entertainment to finance. The terms of the agreement will be for ten years and it calls for Microsoft to license some search technologies to Yahoo; in turn Yahoo would get a lion's share of 88 per cent of the revenue generated by Yahoo searches.
The advertising field would be divided and Yahoo would likely emerge as an online advertising force. Microsoft CEO, Steven Ballmer said that this was a landmark in the history of A&M in IT field and will reach new heights in the field of innovations in search and advertising which is now, he said, dominated almost monopolistically by one company. This agreement marked the end of one of the longest and most tumultuous technology deals in the IT space. This deal is the culmination of a process which began with Ballmer wooing Yahoo in 2006, when Terry Semel was CEO of Microsoft.
The advertising field would be divided and Yahoo would likely emerge as an online advertising force. Microsoft CEO, Steven Ballmer said that this was a landmark in the history of A&M in IT field and will reach new heights in the field of innovations in search and advertising which is now, he said, dominated almost monopolistically by one company. This agreement marked the end of one of the longest and most tumultuous technology deals in the IT space. This deal is the culmination of a process which began with Ballmer wooing Yahoo in 2006, when Terry Semel was CEO of Microsoft.
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