‘Microhoo’ Set For 2012
Posted by Neil Payne on February 19th, 2010Microsoft and Yahoo! have won regulatory approval for their search partnership to challenge Google, the marker leader.
Under the terms of the ten-year “Microhoo” partnership, Yahoo! will use Microsoft’s new Bing search engine technology on its own sites, while Yahoo! will act as the exclusive global sales force for the companies’ premium search advertisers.
The agreement between the struggling internet portal company and software group will run for ten years, giving them an opportunity to provide advertisers with a viable rival to Google’s money-making online advertising platform.
Could Microhoo Overtake Worldleading Google?
The deal was approved without restrictions by both the US Department of Justice and the European Commission. The companies said they plan to begin the partnership soon and have it completed by early 2012. Steve Ballmer, the Microsoft chief executive, said the regulatory approvals were an “exciting milestone”.
The Bing search engine will process search requests and steer search-related advertisements on Yahoo! popular websites while Yahoo! will still control the user experience. Yahoo! is due to get 88 per cent of the revenue generated from the advertisements placed alongside the search results on its sites. Yahoo! has said it stands to gain about $500 million in annual operating income and $200 million in capital expenditure savings from the deal.
Carol Bartz, the Yahoo! chief executive, said: “This breakthrough search alliance means Yahoo! can focus even more on our own innovative search experience.”
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