Microsoft-Yahoo Agree to against Google

July 30, 2009

Finally, Yahoo and Microsoft announced their cooperation in the field of internet search for the weight of their rival Google. They both have sign a contract for 10 years of cooperation for mutual neck and neck against the domination of Google up to now is still so strong. Microsoft will give the weapons for Yahoo website with their new search engine that respited: Bing, while Yahoo will strengthen the line of ad sales online Microsoft.

“Through this agreement with Yahoo, we will present more innovation in the field of search, providing a better value for advertisers, and provides options for the actual users, because this market is dominated by a single player (Google – red),” says CEO Microsoft Steve Ballmer, quoted from the BBC.

Yahoo will give up control to the search engine and Microsoft will get 88 percent of all profits from the sale of search ads on sites up to five years. In addition, Yahoo also has the right to sell ads on some Microsoft site.

Meanwhile, Yahoo says that this agreement brings benefits for users and for advertisers. “This cooperation brings many benefits for Yahoo, our users, and industry, I believe this will build the foundation for a new era internet innovation and development,” said Yahoo CEO Carol Bartz.

However, on the other hand, this agreement brings about the consequences for the Yahoo employees. Section, in cooperation with, the Yahoo search team will threatened employees of a reduction in the next few years.

Some staff will be transferred to Microsoft, so other can stay on Yahoo, but said Bartz, this agreement will make Yahoo a surplus of human resources is required.

According to technology analyst Rob Enderlee, this agreement with Yahoo will increase the estimated annual operating up to U.S. $ 500 million or around Rp 5 trillion, and suggests U.S. $ 200 million in savings.

Nevertheless, Rob said, Google will still dominate the market share of 65 percent, while the combination of the market with a combined Yahoo Microsoft will seize about 30 percent.

Yahoo-Microsoft agreement itself has long be passed. Originally Microsoft put Yahoo and offer to Yahoo’s acquisition of U.S. $ 47.5 billion, in January 2008. However, the bid being rejected by Yahoo, as well as the founder of Yahoo CEO Jerry whos want a higher price.

Top of this rejection, Jerry be censured by the shareholders, to finally step down from its position. However, Microsoft does not trigger desire for more interesting and Yahoo bid acquisitioned. With the presence of a new Yahoo CEO Carol Bartz, the two finally reached an agreement of cooperation to start again a new phase to fight Google’s dominance as rival.


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