Microsoft and Yahoo join forces for search deal

Microsoft and Yahoo are taking on Google's powerful search engine business by signing a 10-year contract, which will have a monumental effect on online searches.

According to an article on HollywoodReporter.com, "The agreement is designed to challenge Google's dominance and the new partners took several shots at the Internet bellwether in announcing it. 'Providing a viable alternative to advertisers, this deal will combine Yahoo! and Microsoft search marketplaces so that advertisers no longer have to rely on one company that dominates more than 70% of all search,' the firms said in a statement."

To elaborate, the deal will allow Microsoft's Bing search engine to power search on Yahoo's Web sites, while Yahoo's personnel will work with both companies' first-rate search advertisers.

A Variety.com article delves into the benefits the deal will bring to the media industry, "As studios devote a larger percentage of their ad dollars to the Internet in promoting their films and TV shows, Microsoft and Yahoo's combined search business (which some have termed MicroHoo) will essentially eliminate much of the confusion for media buyers."

This means that when users type in a name of a film, they will immediately be presented with a variety of channels on Web sites, mobile devices and even Web-enabled Video on demand (VOD) platforms that cable operators are dispensing.

"This agreement gives us the scale and resources to create the future of search," said Microsoft CEO Steve Ballmer in a statement. "Success in search requires both innovation and scale."

The Variety.com article also mentions more of the deal's details and how it will give Google's search engine some very stiff competition, "The deal is expected to close early next year, with the companies assuming it to take two years to roll out services together. Combined, the two companies will control 30% of the search market. Google has more than twice that. Deal is limited to search and does not cover each company's email, instant messaging or display advertising."