Microsoft and Yahoo have signed a search engine deal to merge their search technology and advertisement operations. This move is highly inspired by Google 70% market share and now these two giants are trying to break their way into Google’s territory.
he 10-year deal gives Microsoft an exclusive license to Yahoo’s search-engine technologies, which it will be able to incorporate into its own search platforms. The plan is for Microsoft’s Bing to become the search engine for Yahoo’s sites. Microsoft will pay Yahoo 88 percent of search revenue from traffic on Yahoo’s own sites, with revenue guarantees worldwide for 18 months.
Now, that bing is making headlines with a surge of 8% unique visitors to the page and 28% rise in page impression, it looks like the competition is on.
Yahoo have announced that they will save $200m (£120m) a year on capital expenditure and increase its annual cash flow by around $275m a year, with a $500m benefit to annual income overall. Looks good for Yahoo which was shutting its many services and even planning to shut Geocities where thousands of loyal people will be hurt. Microsoft on the other hand is not talking about how much they are expecting this deal to bring in but they are certainly looking for a market share rather than profits.
Google currently owns the search engine and advertising market and expert feels that monopoly needs to be broken, this deal will put Microsoft back on track but still they have long way to go.
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