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Green Notes

Microsoft announces Yahoo collaboration

Details of a search engine collaboration between two of the three major names in the industry were revealed today, with Microsoft and Yahoo announcing a partnership.

Under the terms of initial ten-year deal, Yahoo’s popular search engine is likely to be enveloped into Microsoft’s Bing platform, with search technologies and profit shares from ads distributed accordingly.

The move is the latest ominous sign that Microsoft really does mean business with Bing, because however mutually-beneficial the deal is dressed up to appear by the respective marketing departments, it has essentially swallowed up it’s nearest competitor in the field. Also, the ten year timescale of the agreement is an interesting note to the episode, suggesting that Microsoft isn’t expecting an overnight result and is in it for the long haul.

However the size of the task in attempting to overthrow Google hasn’t got any smaller. Even combined, Bing and Yahoo’s current share of the search market (28%) doesn’t come close to Google’s domination (65%*).

All in all, Microsoft’s recent moves on search show a certain tenacity for the fight, but it doesn’t look like it has produced a genuine gamechanger… yet.

* Comscore. July 2009.

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