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Microsoft's Yahoo! marriage skips China



8:09 am on Aug 3, 2009 (gmt 0)

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Microsoft's Yahoo! marriage skips China [theregister.co.uk]

Microsoft and Yahoo!'s search engine marriage will not include a Chinese honeymoon due to Yahoo!'s existing nuptials with the e-commerce giant, Alibaba Group.

Despite calling the duo's new search and advertising tie-in a "global deal," Microsoft must in fact overlook the country with roughly 20 per cent of the world's population.

That's because Yahoo! China doesn't really belong to Yahoo!. Back in 2005, Yahoo! pawned its China business to Alibaba.com in return for a 40 per cent share in the company and 35 per cent voting rights.

This is somewhat similar to the Yahoo Japan arrangement, but reports here are saying that it is likely that Yahoo Japan will use Bing and AdCenter [webmasterworld.com]. It may be too early to say what Yahoo China will do.


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