Yahoo, after a long talk with Microsoft, finally decided to surrender control of their popular search engine to join in the Seattle company’s battle against Google for the dominance in the online advertising market. The two IT giants agreed on a 10-year contract that will give Microsoft its best shot to show its new search technology, Bing, can go against Google. With this contract, Microsoft also hopes to use Yahoo to divert sales from Google, which generates more than $20 billion a year from ads.
With this move, Microsoft is hoping that they can triple the market share of Bing to 28 percent. However, it is still a long way to go before it reaches Google’s hold on the market, which is currently at 65 percent. By joining forces, Microsoft and Yahoo are betting they will be able to focus on their respective strengths. By turning over responsibility for search technology to Microsoft, Yahoo can concentrate on sales of billboard-style advertising on the Web — and figuring out how to keep luring traffic to its Web sites, which already attract more than 570 million people worldwide every month.
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