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After announcing that Yahoo had stopped it's Content Match service, our suspicions have been confirmed that something was up! A deal that has been rumoured for some time has now come to fruition between Microsoft and Yahoo. It has been announced that Microsoft's new Bing search engines will power Yahoo's search results whilst Yahoo will become the advertising team. It's well known that Yahoo has suffered financially because of Google's dominance, but previously they have prevented take-over bids (up to $47 billion) from Microsoft. However, since Yahoo co-founder Jerry Yang stepped down as CEO in 2008, a deal has always looked more likely. It might not look such a great deal for Yahoo, but the company will keep 88% of the revenue from all search ad sales for the first 5 years of the deal and have the right to sell adverts on some Microsoft sites. Other major points of the deal are:
What does the deal mean for website owners?In the short term, don't expect much to change in the search engine market. Google still has a massive chunk of the market, upwards of 60% depending on what country you're from. However, a combination of ideas and technology with this new deal might present a bigger challenge. Ultimately, any competition between search engines is good news for website owners. If market share is more evenly spread out, it may make advertising cheaper. It doesn't pay to be loyal with Pay Per Click advertising, the people who act quickly are most likely to benefit.
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