Browser wars move up a gear as Microsoft and Yahoo tie the knot
Yahoo and Microsoft have finally sealed a long-anticipated internet search deal that will help the two companies take on chief rival Google.
The deal enables Microsoft and Yahoo to take on the power of Google in the search engine arena. Bing, Microsoft's new search engine, will be used to power the search function on Yahoo's website, giving the software giant access to the world's second-largest search engine audience. In return, Yahoo will pocket 88 per cent of revenues from search advertising sales for the first five years and will advertise on some Microsoft sites.
Yahoo said the deal – which the groups hope to seal next year, depending on regulatory approval – will boost its operating profit by $500 million (£305m) a year and save it a further $275m a year by removing the need to invest in search technology.
Microsoft chief executive Steve Ballmer said the agreement would give Bing the necessary clout to compete for users and advertising revenue.
"Through this agreement with Yahoo we will create more innovation in search, better value for advertisers, and real consumer choice in a market currently dominated by a single company," he said.
Microsoft stock moved up 1.5% following the announcement.
Source : BBC Technology and The Scotsman