Amid all the speculation this week, it’s official that Microsoft and Yahoo! have made a deal: “Microsoft will now power Yahoo! search while Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers.”
The Search Marketing Industry news sites have covered this completely and a joint web site has been setup my Microsoft Yahoo. I also took a little time to listen in on the investor relations conference call with Steve Ballmer of Microsoft and Carol Bartz of Yahoo! and live tweeted some of the Q and A:
MSFT YAHOO conf call Q: Why no display ad component to the deal? Bartz: To keep the deal straightforward as possible
MSFT YAHOO conf call Q: Why no up-front fee to Yahoo? Bartz: Big cash payment up front doesn’t help Yahoo ongoing operating costs
MSFT YAHOO conf call Q: What impact on jobs? Bartz: Many Yahoos w/be asked to work @ Microsoft, work elsewhere @ Yahoo, some redundancy
MSFT YAHOO conf call Q: How much does deal affect areas where MSFT & YHOO compete? Ballmer: Innovate & need privacy disclosures
MSFT YAHOO conf call Q: What does it mean for MSFT to license Yahoo search? Why not all Bing? Ballmer: We can benefit from Yahoo search tech
MSFT YAHOO conf call Q: Examples of innovation from deal? Ballmer: UI, algos for search relevance, scale provides feedback loop to innovate
MSFT YAHOO conf call Q: Why is this deal better than last year’s? Bartz: Current deal is longer term, more of a partnership, skin in game
MSFT YAHOO conf call Q: Why is this deal better than last year’s? Ballmer: This deal is not better, it’s different.
Last MSFT YAHOO conf call Q from @dannysullivan: What happens to Yahoo news, directory, paid inclusion, Delicious? Bartz: Decide on paid inclusion later. Ballmer: Yahoo has full flexibility & how that pans out is up to Yahoo
Danny Sullivan live blogged the call with a lot more detail.
Other coverage of the Microsoft Yahoo deal:
- Search Engine Watch – It’s Official: Microsoft and Yahoo! Finally Strike Search Deal
- Search Engine Land – It’s Finally Official, Microsoft & Yahoo Make A Deal, Yahoo Gives Up On Search
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About Lee Odden
I look forward to seeing their explanation to antitrust lawyers how this will be good for consumers and business.
Depriving searchers of one third of the unique available search results doesn’t look like consumers will win.
Consolidating page views to drive up advertising costs doesn’t look like marketers will win.
It appears that only Microsoft is poised to win in the long run. They’ll get more revenue from their search advertising.
It’s a big merge from two big known companies on the web.It will surely have a positive effect especially with advertising,promotion and sales.
All though I think this will be a good effort we have to remember that Bing right now is doing anything and everything to cut into Google. Hopefully the end user will not end up suffering from that quest.
this is the recent example for the saying..”enemy of enemy is my friend”.this deal is intended to tackle googles growing search monopoloy.the interesting thing will be how long will this deal work??
The deal is supost to last 10 years (at least) will it? I don’t know…