The Associated Press is reporting on a new deal between Yahoo! (20% market share) and Microsoft for searches. Microsoft (8% market share) has been on the warpath to take on Google (65% market share) for advertising revenue generated from searches. With the recent face lift and feature enhancement of the previous Microsoft Live Search now re-incarnated as Bing, it shows Microsoft’s commitment to bring a serious product to the search market. Yahoo!’s ongoing financial issues have brought an about face regarding what their focus will be in the coming quarters with their new CEO Carol Bartz at the helm.
Partnering with Microsoft may bring a stronger marketing and technology effort in order to give healthy competition to Google, while also freeing Yahoo!’s precious development dollars to the enhancement or creation of lucrative products that will rebuild Yahoo! into a place where people once again spend a majority of their web time. With social site competitors like Facebook and MySpace contending with visitors, Yahoo! must re-focus their energies into leveraging their technology and historical presence to sway people back into their portal.
The deal is currently pending anti-trust regulator approvals from the USA and Europe.
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