Yahoo and Microsoft – Deal of the Decade

October 21st, 2009 · No Comments · Microsoft, Yahoo

Microhoo!  Microsoft Bing & Yahoo Search DealSo if you’ve been under a rock the last few months you might not of heard of the Yahoo and Microsoft deal — the one that went through. It goes like this, for the next 10 years Microsoft (Bing) will be the default search engine for Yahoo! — therefore Yahoo! will be dumping many of its search products. Microsoft will buy a 10 year license from Yahoo! to be Yahoo’s exclusive algorithmic search and paid search technology.

What Does This Mean for Your Bottomline

If you rely heavily on Yahoo search products for your business success then you will likely feel a heavy effect. Yahoo is said to be terminating their Paid Inclusion program, therefore you will have to shift gears at some point. If you do not use Yahoo search products then life will continue as normal for you.

Why Would Yahoo! Do Such a Deal

Here’s my thoughts and I am with Yahoo! on this one, I think the deal was very wise on their part. Yahoo and Microsoft both have been struggling with trying to topple Google search, neither have been able to accomplish this alone, so two heads is better than one.

However, with the deal Yahoo! has been able to cut costs by abandoning the burden of their ailing search product. The money they save from this deal can be poured into research and development for the next 10 years, making it a strong competitor within the next decade.

Microsoft nor Google has the luxuries Yahoo has right now. Both, Google and Microsoft must still pour billions of dollars into their search products every year, while Yahoo! gets to count that money while their engineers develop the most kick-ass search product for 2020!

Yahoo! is saving a lot of money with this deal — they may not have a search product on the backend but on the frontend Yahoo! users will not even notice — smart move! For the next 10 years they will still be highly visible competitor in the search industry.

What’s even more crazy, is Yahoo! still gets paid for search through revenue sharing — so in the process they save money and make more money — WOW! Not many companies can pull off such a smart deal.

Yahoo! has came out the clear winner in my opinion, but in reality if Yahoo! neglect to take advantage of this opportunity then in the next decade the can easily be the clear loser in this deal.

If Yahoo! get to work now, they will have no problem out doing their competition. Yahoo! is probably a great company to work with right now, since with all the money they are saving they’ll be able to afford the best!


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