Financial Updates

Yahoo and Microsoft announced that they have signed a 10 year agreement for search and advertising issues. In a simpler version its that Microsoft will provide the Yahoo search results and Yahoo will work on the worldwide premium search related advertisements.

The Yahoo fans will now miss the yahoo search results and get the Bing search results on their screen as answer of their query. This will give the searcher less option to search in the net.

Google is dominating the worldwide search market with 65% market share. To stop its domination the Yahoo- Microsoft is joining hands and their combined search share is now 28%. Although the share is almost 50% of the Google share, still this deal will give the advertisers new space to showcase their product in a much bigger Bing platform.

If the deal gets the approval of the regulatory body of USA then the Bing can pose a challenge to the Googledom. This approval will not be effective until they get the final approval from the regulatory body which can take at least 2 years.

This deal will leave yahoo basically a marketing and sales and media company and Microsoft will focus on the search technology and the infrastructure. This can also make scope of more improvement for both the companies as they can concentrate with a single sector to compete Google. Although the Wall Street is not at all happy with the deal and yahoo shares dropped by 12%. Google also had to shed 0.8% share price as its impact. Only Microsoft has shown a sunny face with the 1.4% advancement. They are not happy with Yahoo’s surrender to Microsoft in such a manner and there is a fear that Yahoo now can die very soon.