Microhoo Deal In The Works

July 29th, 2009 at 12:00 am

Microsoft Yahoo Logos

There actually some fire to the whole Microsoft and Yahoo deal rumor after all. After the big letdown Microsoft experienced when Yahoo turned down their deal, many thought that was the end of it. But rumors continued on to circulate for months and months afterward that seemed to catch fire but then was smothered. The deal rumors continue to circulate time and again. But according to a report from AdAge, the rumors may turn out to be true after all. Microsoft and Yahoo are nearing a search and ad deal that may be announced sometime this week.

According to the report, among the agreements in the said deal included that Bing would become the default search engine on Yahoo or at least Microsoft’s online search technology running the search box on Yahoo’s pages. This would be quite a benefit for Microsoft since it may be able to share in Yahoo’s close to 30 percent online search market. This would make them come considerably closer to Google than they would have as a lone competitor.

The said agreement also sees Yahoo still getting the revenue from the ad deals on the site. This would be quite logical since it is still Yahoo’s page after all. This would allow Yahoo to sell search ads exclusively to advertisers and avoid some confusion, as such would have been the case if Yahoo and Microsoft shared the ad responsibilities among them. Judging by how it looks, there might be some complexities in the deal that may need to be worked out.

Despite it all, the deal may benefit both companies in the long run. By handing the online search technology to Microsoft, Yahoo may now be able to focus on their sales, marketing strategies and the media. Microsoft, by handing the reins of search advertising to Yahoo, would be able to concentrate on providing online search technology and infrastructure, which is the company’s strength. Despite the reports, both companies in on the deal still declined to comment. We’ll just have to wait and see once again.