Microsoft Partners With Yahoo To Bring Down Google

It seems that Microsoft and Yahoo have finally managed to come to an agreement on their proposed partnership in online search and advertisement fields and are likely to make an announcement today.

The proposed deal will see Microsoft powering all searches through its new search engine, Bing and Yahoo is expected to take the role of managing the advertising sales.

The partnership is designed to counter Google dominance in the online search and advertisement market and will allow the companies to offer a broader range of advertising options before online advertisers; however challenging Google in search space still looks like a daunting task with the search behemoth already having a 67 percent share of search market.

It is interesting to note that this deal comes close to nearly a year after Yahoo rejected Microsoft’s takeover bid; however Microsoft continued its efforts to tie-up with Yahoo and finally looks set to close the deal with the current Carol Bartz led management at Yahoo.

Though both companies look forward to move with the arrangement and challenge Google, their efforts may be hampered by antitrust regulators who are likely to closely examine the deal between the second and third largest internet search firms.

Our Comments

The enemy of my enemy is my friend. Yahoo must seriously regret not having gone with Microsoft last year. The markets reacted positively with Microsoft and Yahoo posting pre-market gains while Google's stocks went down by 1.1 percent.

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