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The U.S. Justice Department and the European Union have approved a deal in which Yahoo Inc. and Microsoft Corp. would combine their Web search operations, the companies said Thursday. In a joint statement, the two companies said they expect to complete the transitioning of Yahoo's search activities to Microsoft by the end of 2010, but some advertising partners may not be moved over until the following year. All customers and partners are expected to be transitioned by early 2012.
[edited by: engine at 5:48 pm (utc) on Feb 18, 2010]
[edit reason] added quote [/edit]
Microsoft's plans to buy Yahoo's internet search and search advertising businesses have been cleared by both European and US regulators.
The European Commission ruled that the deal "would not significantly impede effective competition".
Under the deal, Yahoo's website will use Microsoft's Bing search engine, and the two firms will share the revenues.
When the Yahoo! and Microsoft Search Alliance is implemented, both companies will continue to have differentiated consumer search experiences. However, Microsoft will manage the technology platforms that deliver the algorithmic (powered by Bing) and paid (powered by adCenter) search results.
Yahoo! and Microsoft will each provide customer support to different advertiser segments: Yahoo!ís sales team will exclusively support high volume advertisers, SEO and SEM agencies, and resellers and their clients. Microsoft will support self-service advertisers. In addition, Microsoft adCenter will be the platform for all search campaigns.
However, technology analyst Chris Green of DMG Europe, said Microsoft had little hope of making much of a dent in Google's search engine dominance.
"This deal gives Microsoft a bigger slice of the internet advertising business, but it is still miles and miles behind Google," he said.
"Microsoft's Bing is technically a very good search engine, but no-one uses it, and it doesn't currently make a profit.
"The deal with Yahoo should turn it into a not-too-shabby and profitable world number two search engine. But still no Google."
And to think that MSFT at some point offered Yahoo over $40 Billion! Search was the key, the rest of the Y! content is largely duplicated by msn.com
I believe law should force browsers to offer an easy way for the end user to pick which search company they want to use and make it easy to switch at any time.