On Thursday, Microsoft and Yahoo received something they’ve been waiting for since July — a nod from both the U.S. Department of Justice and the European Commission on a search agreement that could help the companies compete with Google. With the regulatory approvals, Microsoft and Yahoo can implement the deal that calls for transitioning Yahoo’s search platforms to Microsoft.
Once the transition is complete, Microsoft and Yahoo will offer a unified search experience the companies expect will breed innovation and better volume and efficiency for advertisers. They also expect it to provide better monetization opportunities for web publishers with a larger pool of search queries.
“Nobody is going to see any immediate changes. The question is whether or not this will somehow challenge, damage or threaten Google,” said Greg Sterling, principal analyst at Sterling Market Intelligence. “The answer in the near term is no, and we’ll have to wait and see in the long term.”
One Platform, But Different
Yahoo CEO Carol Bartz and Microsoft CEO Steve Ballmer have a different take. Bartz called it a “breakthrough search alliance” that will free Yahoo to combine its science and technology with compelling content. Ballmer called it an “exciting milestone,” insisting the companies working together can bring more choice, better value, and greater innovation to the marketplace.
Under the terms of the agreement, Microsoft will provide Yahoo with Bing search tools and Yahoo will add rich Yahoo content, enhanced listings with organized information about key topics, and tools to tailor the experience for Yahoo users.
Yahoo will work to provide a search experience that lets consumers find and explore topics of interest. While Microsoft will provide the underlying platform, the companies will create different, compelling and evolving experiences as they compete for audience engagement and clicks.
“The irony is that Yahoo may be suffering at the hands of…