Microsoft, Yahoo alliance would target Google

Firms in reported deal to run Microsoft search technology on Yahoo sites

About a year after Microsoft's hostile, contentious and unsuccessful bid to buy Yahoo Inc., the two companies appear set to join forces to take on a common rival - Google.

The Wall Street Journal reported that Microsoft and Yahoo are hours away from announcing a search and online advertising deal. According to Kara Swisher, a blogger for The Wall Street Journal, negotiations have been successfully wrapped up on a deal that is expected to have Microsoft's search technology used on Yahoo sites.

This new Microsoft-Yahoo partnership could give the two companies some much-needed leverage in their ongoing - and until now, separate - battles to chip away at Google's stranglehold on the search market. With Carol Bartz still new at the helm of Yahoo and focused on making the once-online-pioneer hip and fresh again, and Microsoft's Bing search service only a few months old, neither company has been able to make a noticeable dent in Google's well-polished, and well-funded, armor.

So a strategy that has them pooling their resources and industry might makes a lot of sense, says Dan Olds, an analyst at The Gabriel Consulting Group.

"Both Microsoft and Yahoo need this deal if they harbor any hopes of getting back into the lucrative search game," said Olds. "Search has become the most reliable way of capturing eyeballs on the Internet and having a popular search engine is the basis for all of Google's success. Both Microsoft and Yahoo have invested billions of dollars in trying to build search and content portals that would be able to command Google-like ad revenues. But both have failed to blunt Google's revenue growth individually. Together they might have a better chance."

Both companies have also been making separate moves in recent months.

In June, Microsoft unveiled its new search engine, an update to its far-from-beloved Microsoft Live Search. And with Microsoft's advertising power and a lot of media attention behind it, Bing has shown strong numbers just out of the gate. Early this month, Web analytics firm StatCounter reported that Bing may have nibbled away at Google's commanding lead in the search arena, but it definitely hasn't taken a big bite. While Google's share dipped from 79.07 per cent to 78.48 per cent in June, Microsoft's search site share grew from 7.21 per cent to 8.23 per cent.

Yahoo is hanging in at a distant second place to Google with 11.04 per cent of the market.

StatCounter CEO Aodhan Cullen described Bing's progress in the market as "steady, if not spectacular".

And on its own front, Yahoo last week unveiled the beta of a newly overhauled homepage, whose promised features include the ability to integrate with social networking sites like Facebook, Twitter and Myspace. The changes are an apparent attempt to recapture some of the hip cache the site had during its heyday.

The problem for Microsoft and Yahoo is that despite their efforts, Google still looms far ahead of both. Olds, however, said they have a much better shot at their shared opponent if they work it together.

"Separately, they have small fractions of Google's viewership, but together, with a well executed plan and solid cooperation, they have a shot of at least giving Google a run for its money," he added. "Google needs to take this seriously, which I think they will. Microsoft and Yahoo have a lot of resources to throw at this and they now have a partnership and a plan."

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftGoogleYahoobing

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Sharon Gaudin

Sharon Gaudin

Computerworld (US)
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?