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Yahoo search to be powered by Microsoft
30 July 2009
Yahoo and Microsoft have announced a 10 year agreement that will result in Microsoft powering Yahoo search while Yahoo will sell advertising for both companies.
Under the agreement, Microsoft will acquire an exclusive 10 year license to Yahoo's core search technologies, and Microsoft will have the ability to integrate Yahoo search technologies into its existing web search platforms.
Microsoft's Bing will be the exclusive algorithmic search and paid search platform for Yahoo sites.
Yahoo will continue to use its technology and data in other areas of its business such as enhancing display advertising technology.
"...I believe [this agreement] establishes the foundation for a new era of Internet innovation and development," said Yahoo Chief Executive Officer Carol Bartz.
"Users will continue to experience search as a vital part of their Yahoo experiences and will enjoy increased innovation thanks to the scale and resources this deal provides," she said.
Microsoft Chief Executive Officer Steve Ballmer said the agreement will provide Microsoft's search engine, Bing, the scale necessary to more effectively compete, attracting more users and advertisers, which in turn will lead to more relevant ads and search results.
"Success in search requires both innovation and scale," said Ballmer.
"This agreement with Yahoo will provide the scale we need to deliver even more rapid advances in relevancy and usefulness."
Yahoo will innovate and "own" the user experience on Yahoo properties, including the user experience for search, even though it will be powered by Microsoft technology.
The transaction will be subject to regulatory review.
Microsoft's Bing search engine is still listed as being in 'Beta'.
Some people have reported that Bing returns more accurate search results than other search engines, while others have found the opposite.
Test searches have also shown that in some cases, accurate results are not shown until several items into the search results. However, the accuracy of search results is likely to improve over time, particularly once Bing moves out of the 'Beta' phase.
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