Microsoft and Yahoo yesterday announced a 10-year revenue-share search pact that will create what they hope will be a more credible search competitor to Google.
However, market leader Yahoo Japan is majority-controlled by Softbank with 42 per cent ownership of the company. Robbie Hills, Asia-Pacific CEO of GroupM Search, said Yahoo Japan is the “big unanswered question” that wasn’t broached during the companies’ global conference announcing the deal. Yet Yahoo Japan is among the most profitable and successful of its franchises in the world. It recently posted a 0.4 per cent rise in Q1 profit on the back of rising online advertising targeting women.
Hills adds that another cause of confusion for the two companies comes as Yahoo reveals that it will end the use of its ad sales platform Panama, which was introduced to Southeast Asian markets only last year, in favour of Microsoft’s adCenter.