US-based software vendor Microsoft Corporation and Internet search services provider Yahoo! Inc. have announced that they have received clearance for their search agreement without restrictions. The clearance has been granted by both the US Department of Justice and the European Commission. The two firms will now turn their attention to beginning the process of implementing the deal.
Implementation will involve transitioning Yahoo!’s algorithmic and paid search platforms to Microsoft, with Yahoo! becoming the exclusive relationship sales force for both companies’ premium search advertisers globally. Once the transition is completed, the companies’ unified search marketplace is expected to deliver improved innovation for consumers; better volume and efficiency for advertisers; and better monetisation opportunities for web publishers through a platform that contains a larger pool of search queries.
Under the terms of the agreement, which was announced in late July 2009, Microsoft will provide Yahoo! with the same search result listings available through Bing. Yahoo! will innovate around those listings by integrating Yahoo! content, enhanced listings with conveniently organised information about key topics, and tools to tailor the experience for Yahoo! users.
Yahoo! will reportedly focus on providing a compelling and innovative search experience that allows people to find and explore the things, people and sites that matter most to them. While Microsoft will provide the underlying platform, both companies will continue to create different experiences, competing for audience, engagement and clicks.
Yahoo! and Microsoft will work with advertisers, publishers and developers on a customised plan designed to make the transition as efficient and seamless as possible. Both companies will begin working closely with most partners well in advance of their planned transition to the Microsoft platform. They will also communicate important information to partners about the transition periodically via phone, email, webinars and a newly created website at www.searchalliance.com.
The companies will begin the transition of algorithmic search and have set a goal of completing that effort in at least the US by the end of 2010. They also hope to make significant progress transitioning US advertisers and publishers prior to the 2010 holiday season, but may wait until 2011 if they determine that the transition will be more effective after the holiday season. All global customers and partners are expected to be transitioned by early 2012.
Although the transaction previously was cleared by regulators in Australia, Brazil and Canada, the terms of the agreement required clearance by US and European regulators before it could commence. Meanwhile, Microsoft and Yahoo! continue to work with regulators in Korea, Taiwan, and Japan to ensure that they have all relevant information necessary to evaluate the transaction before the deal commences in those specific jurisdictions.
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