Yahoo Readying For Bing Integration By “Identifying” Engineers Who Will Become Part Of Microsoft

According to a report on Wednesday, Yahoo is in the process of identifying as many as 400 engineers who may be headed to Microsoft after US government regulators do their anti-trust review and clear the companies' search deal. The formal agreement between the two companies closed at the end of last week. The 400 engineer transfer is part of the formal agreement between the two companies. In addition, Microsoft is to pay Yahoo  $150 million to defray costs associated with the partnership's implementation. The Associated Press is also reporting that the $150 payment will likely be accelerate [...]

Bartz: Yahoo’s Search Decline Due To Dead Toolbar Deals

Yahoo CEO Carol Bartz says the company's recent search market share declines are due, in part, to the loss of toolbar deals with HP and Acer computers. She made the comments during a keynote presentation today at the UBS Global Media and Communications Conference in New York City. Late last year, Acer dropped Yahoo as its primary search provider and switched to Google. HP made Bing (well, Live Search at that time) the default search toolbar on its computers earlier this year. Before you decide that it's farfetched for deals like this to have a noticeable impact on Yahoo's search share, cons [...]

Yahoo, Microsoft Close Search Deal

It's somewhat ceremonial, but also an important milestone: Yahoo and Microsoft have announced the finalization and execution of the search deal that was first announced in late July. The companies issued this statement: "Microsoft and Yahoo! believe that this deal will create a sustainable and more compelling alternative in search that can provide consumers, advertisers and publishers real choice, better value, and more innovation. "Yahoo! and Microsoft welcome the broad support the deal has received from key players in the advertising industry and remain hopeful that the closing of t [...]

Canada, Australia Give OK To Microsoft-Yahoo Deal

The governments of Canada and Australia have given their okay to the proposed Microsoft-Yahoo Search Deal. The Australian Competition and Consumer Commission (ACCC) has published its findings, which say that "the proposed agreement was unlikely to result in a substantial lessening of competition." The ACCC points to an existing deal in which Microsoft is using Yahoo's paid search platform in Australia, and says that the two companies' "share of online paid search advertising queries in Australia was limited." (Ouch.) The Canadian Competition Bureau has not yet published its findings, but [...]

Microsoft-Yahoo Search Deal On Track For Completion

According to AllThingsD the MicroHoo search deal is nearing completion and "definitive agreement" status. Speculation that the deal was in trouble started happening when the two companies failed to meet their self-imposed October 27 deadline to finalize the complex agreement. However it appears the circumstances were just as reported in the parties' 8-K filing with the US Securities & Exchange Commission: The Letter Agreement specified that the parties would execute Definitive Agreements by October 27, 2009, but given the complex nature of the transaction, there remain some details to be [...]

Yahoo Wins Mobile Carrier Relationship From Google In Germany

Yahoo reported today that the company had "entered into an exclusive, multi-year, partnership with O2 Germany to become the preferred partner for mobile search and services, displacing Google." Paid search results are reportedly part of the deal (and likely a revenue share as well). According to press materials: O2 users now have direct access to Yahoo!’s mobile-optimized search engine, which is specifically designed to provide quick and easily accessible answers for users on the go. Yahoo! most popular properties including Yahoo! Mail, News, Weather, Finance, Flickr, Eurosports and Soccer [...]

So What Are We To Make Of The “Ying” Search Delay?

I got two calls yesterday from people asking what I made of the Yahoo-Microsoft failure to meet their self-imposed search-deal deadline (October 27). I said it was probably just a case of needing more time to work through some of the details rather than a warning sign that the entire deal was in jeopardy. There's much at stake for both companies (somewhat less for Bing) in having committed to this deal. The market would punish both if the deal were to fall apart. It would be very hard for Yahoo to recover in the short term, having lost some of its best search people (many of whom are now wo [...]

American Association Of Advertising Agencies Backs Microsoft-Yahoo Search Deal

One of the factors behind the US Justice Department's (DOJ's) objection to the now-defunct Google-Yahoo search ads deal, which was far less sweeping than the pending Yahoo-Bing/Microsoft deal, was the objection of the powerful advertising trade organization the Association of National Advertisers. Now, another advertising trade organization, the "4As," or American Association of Advertising Agencies, has formally announced its support for the Yahoo-Microsoft search deal. Below is the full text of the letter, which was signed by 4As President and CEO Nancy Hill, along with the heads of the f [...]

MicroHoo Search Deal Faces DOJ Scrutiny, CEO Bartz Would Have Let MSFT Buy All Of Yahoo

Bloomberg is reporting this morning that the US Department of Justice has decided to look more closely at the MicroHoo search deal. Microsoft and Yahoo are to provide more information on their "ad pricing and product plans, a person familiar with the matter said." This is not a surprise. The companies must convince regulators that the deal will not harm competition or adversely affect SEM pricing. They must also do a similar dance in Europe, where a parallel process will take place. In the end, however, it's likely the deal will be approved given broad US and EU concerns about Google's mark [...]

BT/Yahoo Portal Now Powered By … Not Yahoo, Not Bing, Google!

Those with BT broadband in the UK have noticed that the Yahoo/BT portal at has a new search technology provider. You would guess that if Yahoo would replace their own search technology, it would be in exchange for Bing, in light of the recent news about the Bing & Yahoo deal. You would be wrong to think that because Google is now powering the search technology Yahoo/BT portal. Here is a screen capture of the search box that now says, "Powered by Google," taken from, which tipped us to this: I know the Yahoo and Microsoft deal has not been s [...]

Micro-Hoo Details: Q&A With Mehdi & Schneider

Danny and I had an opportunity to talk with Microsoft SVP Yusuf Mehdi and Yahoo EVP Hilary Schneider earlier this morning. Both were instrumental in the deal and will be deeply involved going forward. They characterized the parties' search integration as a long-term partnership, which implies ongoing cooperation and a high degree of collaboration. We had a limited time to get a range of questions out but we were able to get a bit more clarity than we had from just the conference call and press release this morning. Yahoo is going to be doing "premium search" sales. What is "premium searc [...]

It’s Finally Official, Microsoft & Yahoo Make A Deal, Yahoo Gives Up On Search

As expected, Microsoft and Yahoo have finally struck a deal, one that with regulatory approval, they hope will be in place by early 2010. Microsoft has issued a press release and created a minisite about the deal. A press conference is happening later today (which we'll live blog), and we'll have continuing coverage. The details so far: The term of the agreement is 10 years Microsoft will acquire an exclusive 10 year license to Yahoo!'s core search technologies, and Microsoft will have the ability to integrate Yahoo! search technologies into its existing web search platforms [Note f [...]

Reports: Micro-Hoo Search Deal Coming Within 24 Hours

There are reports coming out of the Wall Street Journal and AllThingsD that a search/ads deal between Microsoft and Yahoo will be announced within the next 24 hours. According to the Journal's coverage: The likely deal, which has yet to be approved by either company and could still be delayed further, involves Yahoo agreeing to use Microsoft's search engine on its own sites. But in a shift from earlier discussions, Yahoo would handle selling the text ads that appear next to the search results for its sites and some Microsoft sites, say these people, boosting Yahoo's share of the search advert [...]

Reports: Bing Users Click More, Search Deal With Yahoo Coming This Week

A report analyzing traffic and click-through rates from ad network Chikita finds that "Bing users are over 50% more likely to click an ad on your site than Google users." What this means, according to the post, is those who arrive at third party sites via Bing click more frequently on ads on those sites than those coming through Google. TechCrunch offers a bit more detail and speculation about why this might be (i.e., "the law of large numbers"). According to Chikita, the respective click rates are: Google: .97 percent Yahoo: 1.24 percent Bing: 1.5 percent Bing appears has made some [...]

Microsoft Misses Earnings, Yahoo Board Meets About Potential Microsoft Search Deal

Microsoft reported worse-than-expected earnings yesterday. The company was about a billion dollars off analysts consensus expectations. According to the Microsoft release, the company had huge revenues but still missed: $13.10 billion for the fourth quarter ended June 30, 2009, a 17% decline from the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $3.99 billion, $3.05 billion and $0.34 per share, which represented declines of 30%, 29% and 26%, respectively, when compared with the prior year period. For the full fiscal year reve [...]

Is Yahoo Trying To Sell Small Biz & HotJobs?

Yesterday on the Yahoo Q2 earnings call, CEO Carol Bartz spent time talking about local and small business (SMB) advertising. She said that these overlapping segments were increasingly important to Yahoo and she announced a new deal with AT&T (to sell display ads on Yahoo to SMBs). She added that between AT&T's yellow pages sales force and the company's newspaper consortium partners Yahoo effectively had "13,000 sales reps" in local markets around the US. Here's the relevant verbatim Bartz quote from the earnings call transcript: We also know that local relevance of both content an [...]

Yahoo Debuts SMB DIY Display Ad Builder

After an apparently successful limited trial, Yahoo is rolling out a program that targets small businesses (SMBs) for self-service display advertising on its network and through RightMedia, its ad exchange. The DIY portal is a collaboration between Yahoo and AdReady, which supplies the back end and the ad templates. (Google earlier introduced a similar, though less elaborate product.) The templates can be sorted by best performing (CTRs are exposed), most used and newest. Advertisers can use their own ads as well. Ads can be targeted by geo, content category or Yahoo property. They show on [...]

Yahoo Helping Newspapers Sell More Ads Online

Here's a change of pace: Some newspapers are making money online and crediting a search engine with making it happen. AdAge writes about the Yahoo-Newspaper consortium, and cites multiple cases where individual papers or newspaper groups are using Yahoo's ad targeting technology to increase online-only ad sales. The consortium has sold an estimated $50 million in Yahoo inventory so far, with about 150 papers using the platform and 350 more on the way. But what's most impressive is some of the individual reports from happy newspaper people: Scripps newspapers report a 30% jump in online [...]

Yahoo Trying To Make Display More Like Search

We've known for some time, based on a number of studies from Microsoft, Yahoo, SEM firms and ad networks, that an online ad campaign that includes both display and search performs better than one that features only display or search. In another version of that same theme, Yahoo recently said that it was using search queries as part of its larger behavioral targeting efforts across its display network. In other words, search queries become part of the targeting data that inform what display ads are shown to users thereafter. Display advertising has been battered in this recession despite ple [...]

Yahoo Loses Toolbar Deals; Search Share To Drop?

The Wall Street Journal reports that the loss of two agreements with computer makers could cost Yahoo as much as 15% of its search traffic in the next 12-18 months. Early this year, HP made Live Search the default search toolbar on its computers. And back in October, the WSJ says, Acer switched from Yahoo to Google as its primary search provider. The WSJ cites an unnamed industry insider who says this could cost Yahoo three percentage points of U.S. search market share, or about 15% of its search traffic. Yahoo currently has an estimated 15-20% of overall U.S. searches, depending on which [...]

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