Yahoo Chief Executive Carol Bartz said the idea will help users enjoy Internet services and not just develop technology.
“This breakthrough search alliance means Yahoo can focus even more on our own innovative search experience. Yahoo gets to do what we do best: combine our science and technology with compelling content to build personally relevant online experiences for our users and customers,” she said.
Microsoft’s chief executive Steve Ballmer said of the deal, “Although we are just at the beginning of this process, we have reached an exciting milestone. I believe that together, Microsoft and Yahoo will promote more choice, better value and greater innovation to our customers as well as to our advertisers and publishers,” he said.
The deal
Two years ago Yahoo rebuffed rumors of the current deal saying that the deal was undervalued.
However, now that the deal is coming to fruition, its head of search team said it was “full steam ahead.”
“With Microsoft providing us the underlying list of search results, our Yahoo team can now focus on making the overall experience of finding stuff online and getting things done easier for you,” said Shashi Seth, the company's senior vice president of search products.
Both the companies said that in the next few days Yahoo will become the “exclusive relationship sales force” for all premium search ads globally.
The companies will make a transition in algorithmic search in U.S. by this year 2010 while global customers will be transitioned by early 2012.
Yahoo stresses on innovation
Before the deal was finalized, Yahoo had greatly stressed on bringing new ideas into business. In September, the company introduced a new search platform, which featured a left-hand rail that provided glimpse of videos, photos, reviews etc on the page of search.
“It is our belief that the battle has moved beyond the back end,” said Prabhakar Raghavan, senior vice president of Yahoo Labs last year.
“What we do with it, how we paint it, how we render it, that's entirely up to us,” he said.
Yahoo, which is the world's second-largest search engine, is responsible for 17.5 percent of all searches.
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