Yahoo and Microsoft Join Forces in Search

Carol Bartz, Yahoo, Steve Ballmer, Microsoft

The big news, in case you’ve been living under a rock: Yahoo! and Microsoft have signed a 10 year deal under which their search businesses will unite and become one, in theory better able to compete with Google. “In simple terms, Microsoft will now power Yahoo search while Yahoo will become the exclusive sales force for both companies’ premium search advertisers,” the companies’ said.

Most interesting that Yahoo has effectively conceded Microsoft can do a better job on the search technology front. It seems less an admission of defeat than recognition of reality. “This agreement gives us the scale and resources to create the future of search,” Microsoft CEO Steve Ballmer said in a statement. The deal works on a revenue share basis and will take at least a couple of years to gain proper traction. Search Engine Room: July 30, 2009