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Microsoft and Yahoo agree web deal

posted : THURSDAY, 30TH JULY 2009 13:00:09 BST comments : 0

Microsoft and Yahoo have joined forces in a deal to take on Google
Microsoft and Yahoo have joined forces in a deal to take on Google

The battle between Microsoft and Google is set to intensify after the software giant unveiled plans for an internet search tie-up with Yahoo.

The new 10-year deal is set to give Microsoft access to the second biggest search engine audience on the web, allowing the firm the chance to challenge online search and advertising leader Google.

The new partnership will see Microsoft take responsibility for search functions on Yahoo's site, extending the reach of its recently updated search engine, Bing, as it looks to lure internet surfers away from its major rival.

Microsoft chief executive Steve Ballmer said the agreement would give Bing the necessary clout to compete for users and advertising revenue.

"Through this agreement with Yahoo we will create more innovation in search, better value for advertisers, and real consumer choice in a market currently dominated by a single company," he said.

In a joint statement Microsoft and Yahoo declined to mention Google by name, but said the deal would allow them to provide "a viable alternative to advertisers" so that they no longer have to rely on a single firm that dominates more than 70% of all searches.

"Users will find what they care about faster and with more personal relevance," the companies added.

"Microsoft's competitive search platforms will lead to more value for advertisers, better results for web publishers, and increased innovation and efficiency across the internet."

Bing has received mostly positive reviews since its launch in June and has been given a boost by a 100 million dollar (£61 million) marketing campaign.

The agreement will give Yahoo limited access to the data on users' searches - essentially advertising gold allowing marketing to be tailored to a person's perceived interests.

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