The battle of Internet Giants is back. As per a new deal, Microsoft will now power Yahoo! search while Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers.
Microsoft ‘s new search engine Bing was already expanding and getting great reviews, while Yahoo! has an established presence in the online advertising space. Now Bing will expand even faster and get the scale it needs to compete with Google in the search engine space, while Yahoo will get the advertising business foothold it needed to compete with Google Adwords. Basically speaking, instead of buying each other out as before, now they have stopped competing in their common niche, and instead given way to each other where their strength lies.
Some key terms of the agreement are as follows:
- Microsoft will acquire an exclusive 10 year license to Yahoo!’s core search technologies
- Microsoft will have the ability to integrate Yahoo! search technologies into its existing web search platforms;
- Microsoft’s Bing will be the exclusive algorithmic search and paid search platform for Yahoo! sites.
- Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers. Self-serve advertising for both companies will be fulfilled by Microsoft’s AdCenter platform, and prices for all search ads will continue to be set by AdCenter’s automated auction process.