Microsoft & Yahoo = Google Competition

Image by Gnal via Flickr

Microsoft and Yahoo have finally joined forces, after 18 months of neogiations, to form a formidable competitior to Google’s Search Engine capability.

Microsoft will provide the search platform through it’s newly launched “Bing” Search engine while Yahoo provides the user traffic and advertising.

Yahoo’s former CEO, Jerry Yang, stepped down late last year to allow new CEO Carol Bartz full reign in the neogiations with Microsoft. The deal will provide Yahoo with an additional $500 Million in annual revenue and $200 Million in savings based on the negotiated terms of the deal which include Yahoo’s retention of 88% of the collective advertising revenue stream.

Google has approximately 75% of the internet search traffic and the new joint venture between Microsoft and Yahoo will target those users and advertisers by offering lower priced and equally effective advertising through the colorful “Bing” portal.

Carl Icahn, a major shareholder in Yahoo, expressed his approval of the joint venture, stating; “It is about time. I wondered if this joint venture would ever materialize given the difficulty with former management. Carol Bartz is the right person at the right time. Congratulations to both Microsoft and Yahoo.”

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