And Then There Were Two (5:15)

Posted on by Abby Johnson |

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Yahoo and Microsoft have finally partnered in a search agreement. A deal has been anticipated ever since Microsoft tried to buy Yahoo for 44.6 billion in early 2008. This current proposed deal however, looks nothing like that original offer. The companies have not disclosed all financial terms of the deal, but it does not appear that Yahoo received any upfront payment.

In summary, Microsoft will power Yahoo Search and Yahoo will become the exclusive search advertising provider for Microsoft’s search engine, Bing. Microsoft’s AdCenter will operate self-service advertising for both companies, but each company will maintain its own separate display advertising business and sales force.

In an interview with WebProNews, search industry leader Danny Sullivan summed up his thoughts by saying what the deal meant for each company. He said, “[A] big win for Microsoft, a lot of questions for Yahoo.”

The deal will likely face a close antitrust review from regulators especially regarding Steve Ballmer‘s claim that the partnership would provide a stronger competitor for Google.

It is still early, but nonetheless, there are many unanswered questions associated with the deal. Could Yahoo have bargained a better deal? How will Google respond? Is the deal a good move for Yahoo? How will the partnership influence the future of online advertising? What are the impacts on the SEO industry?

Even Danny Sullivan said it was too early to accurately speculate on what may happen, but he did say he didn’t expect any dramatic changes for SEO.

Provided the deal is granted regulatory approval, Yahoo and Microsoft said they hope to have their partnership finalized by early next year.

Posted in: Advertising and Marketing, Danny Sullivan, News and Events, Search Engines, SEO
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