The deal between Microsoft & Yahoo which has been lingering on since almost a year finally gave some clues yesterday(jul 28). Yahoo and  Microsoft has agreed to an online search and advertising partnership as reported by Reuters. As seen in the past both Microsoft & Yahoo have been very strategic in this deal. yahoo-ms-google

Bing, a search engine recently launched by Microsoft is doing exceptionally good standing against all the critics. This partnership with yahoo is really going to boost Bing and the revenue of both companies. Microsoft is not going to pay any upfront amount to Yahoo. This deal is going to be a mutual benefit for both the companies. Google who is the leader in search engine market having 65% around traffic.

The previous bid of made by Microsoft to Yahoo was rejected by the later and instead Yahoo announced ad alliance with Google. However the ad alliance with google did not workout due to opposition from the U.S. Department of Justice. Yesterday it has been announced informally and the final deal will come out within 24hours. It will be interesting to see how the deal is finalized, because experts say it may have some privacy issues.

Is it really a market for Search Engines ?

After twitter announced its new homepage which is more like a real time search engine, it clearly looks that all the big businesses have an eye on the Search Engine market. On the other hand, Google stands alone and tall. But with the latest development of Twitter as a real time search engine and deal between Microsoft and Yahoo , Google might have some bigger plans as well. Google might want to take an action, as the way Bing emerged in the market has clearly showed that Microsoft is ready to fight back and do not want to be a number 3 search engine anymore.

Google is also treading in the Operating System business with latest announcement to release its own open source operating system called Chrome. So its like a world of experiments and ideas. With all these latest developments real advantage is to the end user as they are getting information more easily and precisely.

Now we have to wait for the deal to come out formal and see if it is going to be a complete deal between Yahoo and Microsoft or unlike the previous ones.

Stay Digified !!
Sachin Khosla

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