Microsoft and Yahoo recently released details regarding a web search and advertising revenues alliance, all according to Reuters.
The alliance is going to be complex (as expected when dealing with two giants) but the companies will for example split the revenues coming from online advertising and Yahoo will use Microsoft’s search engine Bing on their sites. Yahoo will be the company in charge of managing the revenues from the advertising on a global scale.
“Through this partnership with Yahoo we will be able to create innovative search functions, add value to our clients as well as providing consumers with an alternative to a market that is dominated by one single company”, says Steve Ballmer, Chief Executive at Microsoft.
Steve Ballmer obviously refers to Google, who is getting increasingly dominating on the search engine market. With this alliance Yahoo and Microsoft are stepping up their position in the battle against their enemy Google.
The alliance can lead to around 500 million dollars in increased revenues per year, according to a press release in Reuters.
“This deal means a lot for Yahoo, for our users and for the industry as a whole. I believe that it creates opportunities for a new era of innovation and development on the Internet”, says Carol Bartz, Chief Executive at Yahoo.
The contract will tie the two companies together for a period of ten years. This arrangement was preceded by an 18 months long attempt from Microsoft to get Yahoo to join them in the battle against Google. I for one am looking forward to see how all of this will present itself in the future. Beating Google is not the easiest of tasks.
No comments:
Post a Comment