In a bid to challenge the ever-increasing dominance and overwhelming authority of Google in the Internet search market, Microsoft and Yahoo has finally agreed to sign in a ten-year deal. The ever dwindling position of the both yahoo and Microsoft have forced them to abandon rivalry and join in hands to tackle the immanent challenges from Google. Google now controls 65% of the US market share in online industry and this deal will enable Microsoft and Yahoo to grab 28% of total market share, which is still a far from Google’s current position.

Both Microsoft and Yahoo had taken a number of initiatives for improving their current online presence but all the efforts had failed utterly owing to lack of coordination and marketing study. Yahoo had replaced its CEO with Jerry Yang and shut down a number of its services, which had failed to live up to its expectations, whereas Microsoft has unveiled its new search engine Bing that was also turned out to be a mere shadow of what it had termed and promoted – decision search engine. Therefore it was a sheer necessity for both companies to sign a pact to brave the dominance of Google. This pact was will allow Microsoft to use Yahoo search technology by powering yahoo search. On the other hand, Yahoo will grab the exclusive right to act as an exclusive worldwide relationship sales representative for both the companies.

Some other aspects of this ten years agreement are enumerated below:

• Microsoft will get the right to use and integrate Yahoo!’s search technologies wherever it likes for the next ten years.
• Bing will act as both paid search and exclusive algorithmic search platform for all Yahoo! Sites. But this deal will not be able to deter Yahoo from using its data and technology for enhancing advertising technology.
• Yahoo will be offered 88% of the revenues that will be generated by Yahoo!’s O&O sites in the first 5 years.
• Both companies can promote their advertising business individually.

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