Yahoo-Microsoft Search Deal Finally Cleared By DOJ and European Commission

Erick Schonfeld

Erick Schonfeld is a technology journalist and the executive producer of DEMO. He is also a partner at bMuse, a product incubator in New York City. Schonfeld is the former Editor in Chief of TechCrunch. At TechCrunch, he oversaw the editorial content of the site, helped to program the Disrupt conferences and CrunchUps, produced TCTV shows, and wrote daily... → Learn More

Thursday, February 18th, 2010

yahoo_microsoft

It’s been a long and winding road for Yahoo and Microsoft since Redmond’s first attempt to buy Yahoo for $45 billion two years ago, which ended up in the two companies agreeing to a complicated search deal in July, 2009. Today, the last hurdle to that deal has been removed, with government regulators in both the U.S. (the DOJ) and Europe (the European Commission) approving the deal. Yahoo and Microsoft can finally get on with their lives.

Microsoft will take over Yahoo’s organic and paid search results and blend those resources into Bing. Yahoo will continue to control the front-end UI of search on Yahoo’s sites, and consumers will continue to see and be able to use the Yahoo search engine. The transition of the back-end search algorithms and results may still take until the end of 2010 to complete. Advertisers and Website partners which use Yahoo search may have to wait until after the 2010 holidays to be transitioned to Bing.

Since the deal was announced, Bing has been taking search share away from Yahoo. The question now is whether the combined scale of search across all of Yahoo and Bing can help Microsoft make a dent in Google’s dominance.

Company: Yahoo!
Website: yahoo.com
Launch Date: January 1, 1994
IPO: December 4, 1996, Nasdaq:YHOO

Yahoo was founded in 1994 by Stanford Ph.D. students David Filo and Jerry Yang. It has since evolved into a major internet brand with search, content verticals, and other web services. Yahoo! Inc. (Yahoo!), incorporated in 1995, is a global Internet brand. To users, the Company provides owned and operated online properties and services (Yahoo! Properties, Offerings, or Owned and Operated sites). Yahoo! also extends its marketing platform and access to Internet users beyond Yahoo! Properties through its distribution network...

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Product: Bing
Website: bing.com
Company Microsoft

Bing is a decision (search) engine from Microsoft officially announced on May 28, 2009. It combines technology from the Farecast and Powerset acquisitions, as well as new algorithms and a more colorful page design, to attempt to understand the context behind the search, which Microsoft claims gives users better results. Bing as a brand is also an attempt to eliminate the confusion caused by Microsoft’s “Windows Live” branding. Bing is now everything “search” related, whereas Windows Live encompasses the remnants...

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