Captured Technology

Microsoft's And Yahoo's Search Partnership

Apr 17 2015

MicrosoftYahoo

Microsoft and Yahoo are going to continue their 2009 partnership in order to increase Yahoo search potential and add value for its advertisers.

The two companies have a goal to make their partnership even stronger.  They want to make the search engine experience even better over various platforms.  They also want to add value for their advertisers and make the platform stronger for other partners that are involved.

The Microsoft and Yahoo partnership began back in 2009 when the two CEOs of the companies Carol Bartz and Steve Ballmer made it official.  The companies want to compete with Google and in order to do so, they collaborated with a plan in which Yahoo would get more into sales while displaying Microsoft's search tools.  This would happen over a 10 year period.

This was such as huge news item when it was officially announced back in 2009.  Yahoo's stock went down by 12%.  Investors thought that the partnership did not take into consideration certain privacy, regulatory, integration and technology concerns.  Steve Ballmer, the CEO of Microsoft at the time, said that things were going to be a little bit difficult to understand in terms of how the whole partnership was going to be beneficial in the future.

The current CEOs of the Yahoo and Microsoft say that they are still committed to the original partnership.  They also plan to make a couple of changes as well.  They say that these changes will make the deal much more stable and beneficial according to a recent press release. Current CEOs could have trashed the plan all together as they have vastly different visions than in the past.

According to Marissa Mayer, the current CEO of Yahoo, the two CEOs are working to make things better for its customers by keeping up with the latest in search technology.  They CEOs are confident that this partnership will provide a lot of new opportunities for growth.

Microsoft is supposed to power paid and algorithmic searches for Yahoo.  This was what the two companies agreed to back in 2009.  It was also agreed that Yahoo would get some of the revenue that comes from Bing Ads that were a result of searches made on Yahoo.  Yahoo has since announced that this same revenue sharing plan is still in effect as of today.

One of the first changes involves Yahoo.  This company is to become flexible in order to make searching on digital platforms much better.  This is because the agreement does not just include mobile devices or desktop arrangements.  Bing ads will still show up during Yahoo searches, but there is also the ability to go after other opportunities as well.

The second change has to do with agility and sales.  Microsoft will be the only one advertising the Bing Ads.  Yahoo won't have anything to do with the Bing search ads.  However, Yahoo will still control the Gemini Ads sales.

Google is the top dog, but Yahoo and Microsoft are still seen in the search engine fight.  Microsoft is at 20 percent and Yahoo at 12 percent.

Steve Ballmer on Yahoo Microsoft deal

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