Microsoft and Yahoo Vs Google

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It was announced last week that Microsoft and Yahoo will be joining forces in an attempt to topple Search giant Google, in a bid to become the world's most utilised search engine.

It was announced last week that Microsoft and Yahoo will be joining forces in an attempt to topple search giant Google, in a bid to become the world's most utilised search engine. Microsoft has been trying to convince Yahoo for a number of years that teaming up is the only viable strategy in achieving any significant market share gains in the Google-dominated search engine market.


The duo have signed an initial 10-year deal which was announced last Wednesday. The deal will give Microsoft the the opportunity to prove that Bing, its new search engine, is better than that of Google's. Furthermore Microsoft also hopes to use the new relationship to gain some of the $20 billion a year Google receives in advertising revenue.

The partnership will see Microsoft's market share grow to 28 percent of the US market. The deal will not be finalised until 2010 but once in place should hopefully give Google a run for its money. While Microsoft and Yahoo are looking forward to some very positive outcomes, the months leading to the finalisation of the partnership and the development of their strategic plans will be interesting. Why? Google's Adwords advertising system currently works on a competitive bid basis, hence its hard to accuse Google of blatant profiteering, or for Google to decrease advertising prices. There have however been some complaints about the treatment of advertisers by Google given that they dominate the market, so more competition may see a change in attitude from the search giant.

We will keep you updated over the coming months.