Verecom Web Design Blog

Through many negotiations, Microsoft and Yahoo announced a number of cooperation in the search engine market. Yahoo will use Microsoft technology for all its search engine assets, while it is also responsible for online ads sales for both side platform. From this 10 years co-operation, Microsoft can exclusively access to Yahoo search engine license, and Microsoft can also integrate yahoo technology with its own.

From Revenue-sharing agreement based on the two sides, Microsoft will pay Yahoo for the traffic generated by Yahoo Website; Yahoo is expected to increase 500 million U.S. dollars annual revenue and cash flow of 275 million U.S. dollars, while saving 200 million capital expenditure.

“The cooperation will benefit our clients and industry greatly” Yahoo CEO Carol Bartz said in a statement. “I believe this cooperation laid the foundation for innovation and development of the Internet into a new era” Bartz said.

Microsoft and Yahoo have more than a year to discuss cooperation, at beginning Microsoft plan to buy Yahoo, and this request was refused by Yahoo’s CEO Jerry Yang. However Jerry Yang was been removed from the board of director and replaced by Bartz, hence triggered this negotiation for cooperation.

Microsoft CEO Steve Ballmer also commended the cooperation between the two sides will benefit Microsoft’s new search engine www. Bing.com and great opportunity to challenge current top 1 search engine giant, Google.

“Through the cooperation with Yahoo, we will be able to develop more innovative search technology to benefit our advertisers, and also to provide more market choose for consumers beside Google.” Ballmer said.

“The success of search engine businesses needs innovations and users scale, our search platform www.Bing.com provides a breakthrough innovation. And the cooperation with yahoo will provide the scale we need for the rapid development on relevance and the availability”

Based on ComScore’s survey, Google currently holds the 65% of search engine market in US, Microsoft only has 8% and Yahoo has 20%.

Edited By Henry Lu

IT industry testing released the report says the growth rate of Microsoft search engine Bing.com already run ahead of rivals since his launch on May this year.

Microsoft new search engine provides many search services. According to data released by Hitwise showed that, the growth rate of Bing.com reached 25 percent in June. But however, its
U.S. market share is still only 5.25 percent.

This new search engine attracts the close attention of media. Microsoft plan to spend 100 million U.S. dollars to promote Bing.com, and intends to take the territory from Google, the current number one search engine company.

However, Google still remains the dominant position of the U.S. market with 74 percent market share. Yahoo still has the second largest market share of 16%. Ask.com has fourth place with 3.2 percent market share.

Analysts said that, the growth rate of Bing.com is faster than the other three well-known search engine companies. And Microsoft hopes Bing.com can grab more market for online ads.

On Thursday’s stock trading, Microsoft shares fell to 22.44 U.S. dollars. And Google rose 2% to 410.39 U.S. dollars.

Edited By Henry Lu