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Microsoft and Yahoo in Final Talks on Search Deal
Brett_Tabke




msg:3954300
 11:32 am on Jul 17, 2009 (gmt 0)

AllThingsDigital [kara.allthingsd.com] story on a brewing Microsoft <-> Yahoo deal on search.

Microsoft (MSFT) paying Yahoo (YHOO) several billion dollars upfront to take over its search advertising business and guarantee certain payments back to Yahoo.

There is also a display advertising element to the deal, which would likely have Yahoo take the lead in selling premium advertising for the companies.

Unless there is some major glitch, there might finally be a search and online advertising deal struck between Yahoo and Microsoft at long last.

Top executives at Microsoft–including SVP of the Online Audience Business Group Yusuf Mehdi, search head Satya Nadella and top digital exec Qi Lu, as well as others–have all flown down to Silicon Valley from their Redmond, Wash., HQ today to iron out the remaining issues, which seem to have to do with the deployment of technology.

If all goes well, the deal could be announced within the next week, sources at both companies said.


 

engine




msg:3954306
 11:58 am on Jul 17, 2009 (gmt 0)

Perhaps Yahoo is realising it can make more by subcontracting the search advertising to Microsoft.

jlara




msg:3954329
 12:33 pm on Jul 17, 2009 (gmt 0)

"And then there were two"... JL
I always figured it would end up as a Coke / Pepsi situation. Combined I do not believe they are a threat to Google, but rather an alternative.

JS_Harris




msg:3954331
 12:39 pm on Jul 17, 2009 (gmt 0)

I'm a Yahoo! user so my gut reaction is simply why? Yahoo! doesn't absolutely need Microsoft for anything, in fact Yahoo! stands to lose a little of their identity in any deal with M.

On the other hand... if someone comes knocking on my business door with billions in hand I'm sure I'd say come on in too.

swa66




msg:3954333
 12:47 pm on Jul 17, 2009 (gmt 0)

First there is the problem of making a partnership deal with Microsoft historically makes the partner quite unhappy in the long run. IBM, Apple, none seem thrilled and they were bigger than Yahoo! is.

Next there's Ballmer losing face -again- since he proclaimed he didn't need Yahoo! and they'd do it on their own. Sure the Marketing spin will be ready and it's not the first time he's lost face.

Then there's the spin on it in the press that Yahoo! needs MSFT in order to fight Google. This sounds like wishful thinking from the Microsoft fans. Google clearly aims at hurtign Microsoft (be no evil is all about that). But Yahoo! has the same spirit as Google, not the same spirit as Microsoft and Google isn't out to hurt Yahoo! Despite what the google haters seem to think Google actually helped Yahoo! in the hostile takeover by Microsoft. Sure you can spin it that they didn't want Microsoft to get a hold of Yahoo! (they'd be stupid if they did want that), but there are other ways (far more aggressive) than to be friendly and help them.

Bing's success has not proven it will last beyond the advertising spending, nor that if they use other means to promote bing it will last the scruteny of oversight (e.g. the EU might (should) object strongly to MSFT pointing their users of IE, windows, office and other monopolistic products over to bing by default. They've been burned there a number of times, sometimes you'd expect them to learn their lesson, if not -there's always a new record setting fine-.

I think it's a pity Yahoo! can't seem to find a way to be MSFT-free.

lorax




msg:3954335
 12:51 pm on Jul 17, 2009 (gmt 0)

>> Coke / Pepsi

Feels more like a VHS and Beta situation to me.

dudibob




msg:3954364
 1:51 pm on Jul 17, 2009 (gmt 0)

"Feels more like a VHS and Beta situation to me."

Yeah, Versus DVD

BillyS




msg:3954411
 2:56 pm on Jul 17, 2009 (gmt 0)

I'm slow on this one. Who is doing what for whom? And it appears this is only for advertising, nothing to do with search results.

jgold454




msg:3954416
 3:02 pm on Jul 17, 2009 (gmt 0)

Yeah, what is the effect on organic SERPS with this deal?

Lts95




msg:3954449
 3:57 pm on Jul 17, 2009 (gmt 0)

I'm slow on this one.

No, I'm not really seeing what the big deal is here either. My take is Microsoft is going to replace or supplement AdCenter with Yahoo! Search Marketing I don't see how that really does much of anything for anyone.

Jane_Doe




msg:3954509
 5:22 pm on Jul 17, 2009 (gmt 0)

My take is Microsoft is going to replace or supplement AdCenter with Yahoo! Search Marketing I don't see how that really does much of anything for anyone.

Bing(go)!

night707




msg:3954627
 9:02 pm on Jul 17, 2009 (gmt 0)

A comparison of webmaster tools, free mail systems, video range and so on doesn`t make Ballmer look good at all.

So it is now two long time losers trying to catch up with the champ.

Twitter, facebook, myspace etc should have come from their guys.

This will become a total mess at corporate and product levels that will make Google even more mighty.

Not good though for all of us.

mrguy




msg:3954677
 11:10 pm on Jul 17, 2009 (gmt 0)

Where can I guy a pair of the rose colored Google glasses again.... Mine were broke after Google trounced on years worth of work while doing no evil........

bill




msg:3954690
 11:28 pm on Jul 17, 2009 (gmt 0)

Are they really going to throw search into this deal? I think I can see the reason MS would want to use the Yahoo/Overture ad system.

carguy84




msg:3954711
 12:57 am on Jul 18, 2009 (gmt 0)

So is it going to be Yang or Bihoo?

MrHard




msg:3954745
 3:07 am on Jul 18, 2009 (gmt 0)

My take is Microsoft is going to replace or supplement AdCenter with Yahoo! Search Marketing I don't see how that really does much of anything for anyone

I was hoping it would be the other way around.

swa66




msg:3955090
 10:57 pm on Jul 18, 2009 (gmt 0)

So is it going to be Yang or Bihoo?

Boo! :)

CosmicLee




msg:3955338
 5:32 pm on Jul 19, 2009 (gmt 0)

Likely keep them as two separate products. But I like Yang!

gouri




msg:3955727
 1:39 pm on Jul 20, 2009 (gmt 0)

I am trying to understand if this search deal will have an impact on a site's traffic?

skibum




msg:3956271
 4:32 am on Jul 21, 2009 (gmt 0)

In any case, if it does not work out, the source said, “this will be it…we will all finally go our separate ways and be done with it.”

Let's hope this is the end result and we can get past this!

It's like a marathon with runners from Google, Yahoo! and MSFT. Google wins every race by a long shot and then Yahoo! & MSFT figure that if they tie one of their legs together so they have 3 legs instead of two they will be able to beat Google in the race.

If MSFT and Yahoo! join forces, I see Google market share on a steady uphill climb.

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