Get ready for a Microsoft and Yahoo search engine partnership, as they are in talks of a new deal. The deal states that Microsoft will pay Yahoo several billions of dollars upfront to take over its search advertising business and guarantee certain payments back to Yahoo.
Microsoft’s new search engine, Bing.com has reportedly received good ratings. If the deal comes through, both Yahoo and Microsoft can gain. In addition, we can also get ready for some new innovative technology, which is caused by the intense competition.
Now, what does this mean for Google, currently the world’s largest search engine?
Google states that their primary competitors are Microsoft and Yahoo. They believe Microsoft will increasingly use its financial and engineering resources to compete, especially since Microsoft has more employees and cash resources. In addition, both Microsoft and Yahoo have longer operating histories and more established relationships with customers. Any teamwork between Microsoft and Yahoo will could lead to a decline in Google’s user traffic or the size of their network, thereby bringing a decline in their revenues.
