Microsoft Yahoo Search Engine deal Approved

Microsoft plans to buy Internet search engine Yahoo search and advertising companies have been approved by European and U.S. regulators.

The European Commission has decided that hinder the business “not significantly impede effective competition”.

Under the transaction, Yahoo’s web search engine is Microsoft Bing, and use the two companies will share revenue.

Microsoft is committed to increase their shares of the search engine industry, which is dominated by Google, too.

The first, and Yahoo announced the planned tie-up in July last year.

“Stronger competitors”

In explaining its decision, the Commission stated that, taken together, Microsoft and Yahoo currently have less than 10% of the search market in Europe, with Google controlling 90%.

The deal gives Microsoft a bigger slice of the Internet advertising business, but it’s still miles and miles behind Google
Chris Green of DMG Europe

The Commission stated that the investigation revealed that the deal was expected to “competition in the Internet search and search advertising by Microsoft to raise a stronger competitor to Google.”

In the U.S., the deal was also supported on Thursday by the judiciary.

Microsoft CEO Steve Ballmer said regulatory approval for the tie-up represented “an exciting milestone”.

“I believe that together, Microsoft and Yahoo as well as for advertisers and publishers to promote more choice, better value and greater innovation for our customers,” he added.

MICROSOFT
The annual turnover of $ 58.44bn
Net profit of $ 14.57bn
93,000 employees

Yahoo CEO Carol Bartz said the two companies’ alliance would break search.

However, said technology analyst Chris Green of DMG Europe, Microsoft had little hope of making much of a dent in Google’s search engine dominance.

“This deal gives Microsoft a bigger slice of the Internet advertising business, but it’s still miles and miles behind Google,” he said.

Microsoft’s “Bing is technically a very good search engine, but nobody uses it, and make it present no profits.

“The deal with Yahoo, there should be a not too shabby and profitable world number two search engine. But still no Google.”

Revenue sharing

As part of the 10-year Microsoft-Yahoo agreement, the Microsoft search engine Yahoo Bing site of power, while in turn the main Yahoo advertising sales team Bing.

YAHOO
The annual turnover of $ 6.46bn
Net income of $ 598m
13,900 employees

In return, Microsoft will have 12% of the search engine Yahoo generates revenue through the website for the first five years of the transaction, and also the payment of the remaining 88% on Yahoo.

Microsoft and Yahoo said they would begin to implement the agreement “in the coming days.”

They said they would work with advertisers to make the transition as “an efficient and seamless as possible.”

In 2008, Microsoft offered to buy $ 47.5bn (£ 30.4bn) to the entire Yahoo, but his offer was rejected.