Microsoft and Yahoo Search Alliance vs Google

Stepping ahead on 18th February 2010, both US and Europeans regulators has cleared the way for Microsoft and Yahoo search partnership to be tied up. The 2 giant search engine alliance is predicted to be great competition against Google search.

“Although we are just at the beginning of this process, we have reached an exciting milestone,” said Microsoft chief executive Steve Ballmer “I believe that together, Microsoft and Yahoo! will promote more choice, better value and greater innovation to our customers as well as to advertisers and publishers.”

“Success in search requires both innovation and scale. With our new Bing search platform, we’ve created breakthrough innovation and features. This agreement with Yahoo! will provide the scale we need to deliver even more rapid advances in relevancy and usefulness. Microsoft and Yahoo! know there’s so much more that search could be. This agreement gives us the scale and resources to create the future of search.”

Microsoft claims that the search agreement was announced in late July 2009, but the company has been flirting publicly with Yahoo for a total of over two years, but there’s no way of telling just how much time had Ballmer actually spent on this deal ahead of the start of 2008. The debut of February 2008, brought with it an unsolicited offer of $44.6 billion from Microsoft, which at the time was trying to acquire Yahoo. Making sure that the deal fell through was Yahoo co-founder Jerry Yang, then occupying the position of CEO.

“Microsoft really has room to throw money at this,” said Kim Caughey, senior analyst at Fort Pitt Capital Group. “I think it can work. If they can make inroads in specific target areas, they could have something positive to report.”

As per release by comScore January 2010 on search engine ranking, Google dominated the market share by 65.4% while Yahoo and Bing combine of 28.3%. There’s still a vast gap against the search engine king.

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