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Yahoo and Microsoft join forces to take on Google

05 August, 2009
By Allison Orr

Two online giants, Yahoo and Microsoft, have formed a partnership in an attempt to take on the market leader in online search, Google.  Under the agreement, Yahoo will use Microsoft's Bing technology to power search queries and will take responsibility for global sales for premium search ads.  The agreement is expected to be finalised in 2010.

Industry observers have been awaiting a deal between the two companies for some time, after previous attempts to join forces failed, especially last year's move by Microsoft to takeover Yahoo.  This deal was rejected by Yahoo on the grounds that Microsoft had undervalued the company at US$44 billion.  The market value of the company is now estimated at US$22 billion.

Even combined, the companies still have a long way to go to catch Google.  Globally, Google has about a 67 per cent share of the Internet search market, compared to a combined 11 per cent for Microsoft and Yahoo.

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