Saturday, August 15, 2009

Is Yahoo-Microsoft deal a real threat to Google?

The speculative journey of Yahoo-Microsoft deal is finally concluded, when two companies announced a partnership in Internet search and advertising to take on industry powerhouse Google. There is lot of skepticism about whether the this partnership can have strong impact on Google's dominance.

Even with the deal it appears very difficult for Yahoo-Microsoft to wean people away from Google's simple white search engine. If they fail to build larger audience base then it will definitely hit the major revenue source through Ads tied with searches.

Last year Microsoft rated 3rd in search market bid $47.5 billion to buy Yahoo, rated 2nd in search market. Finally Microsoft withdrawn the offer, this led to lot of soul searching in Yahoo and replacement of its co-founder.

Under this agreement Microsoft will provide the underlying search technology on Yahoo's popular websites. This deal is expected to boost recently launched Microsoft search engine Bing,
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