Microsoft and Yahoo! Join to Combine Market Share

July 30, 2009
Yesterday Microsoft announced that it had bought Yahoo!, the 2nd most widely used search platform next to Google.

The three top search engines are Google with 65% of market share, Yahoo, and MSN (now called “Bing”). With Bing and Yahoo joining forces, increased competition will be in effect with Yahoo and Bing handling 28% of the search.

Now there will be only two top leaders of internet search. What does this mean for websites already indexed in Yahoo and Bing? No one is really sure….but now websites must battle in 2 zones instead of 3; which increases the competition and fierceness of the search world.

“Microsoft didn't have to give Yahoo an upfront payment to make it happen, as many Yahoo investors had been counting on ever since Microsoft dangled $1 billion last summer in an attempt to forge a search partnership then.

Google tried to stop Yahoo from falling into Microsoft's camp. Last year it formed its own proposed search advertising deal with Yahoo, only to be forced to retreat from that alliance after U.S. antitrust officials threatened to sue.

Now the extended reach Microsoft is gaining will let it introduce its recently upgraded search engine, called Bing, to more people. The Redmond, Wash.-based software maker believes Bing is just as good, if not better, than Google's search engine. Taking over search responsibilities on Yahoo's popular site gives Microsoft a better chance to convert Web surfers who had been using Google by force of habit.

"Microsoft and Yahoo know there's so much more that search could be," said Microsoft Chief Executive Steve Ballmer. "This agreement gives us the scale and resources to create the future of search.”

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