The Agreement Between Microsoft and Yahoo

The Agreement Between Microsoft and Yahoo

When it comes two news about technology and more specifically, the Internet, there is a lot of news that circulates on a daily basis. However, one of the more interesting pieces of news comes from CNET. It talks about the agreement that Yahoo and Microsoft have with each other when it comes to Internet search engines and how these platforms will be conducted. Several years ago, the two companies signed a 10 year agreement lining out the different ways that search would be conducted. They are currently in their sixth year of that 10 year agreement and over time, the agreement has been tweaked slightly.

Specifically, the most recent update to the agreement involves increase flexibility for Yahoo and some amendments to the way the ad sales will be handled with both companies. Both of these companies have a lot to gain from this type of agreement so it is relatively easy to understand why they have made the decision to work together on certain things. After all, Microsoft and Yahoo are the two largest companies in the Internet search engine business and since they have essentially cornered the market, they decided long ago that it would be a good idea for them to work together as opposed to competing with each other and butting heads.

The changes in ad sales basically allow Microsoft to handle all of the ads concerning Bing, even those that appear on Yahoo sites. In addition, Yahoo will handle advertising for its own set up, leaving everything else to Microsoft. At first, this may seem like Yahoo is getting the short end of the stick, so to speak. However, that is not necessarily true. Yahoo is definitely getting something out of the deal, mainly an increase in flexibility concerning the way that its search engine performs on different devices.

This increase in flexibility will allow it to develop more of a presence on both desktop computers and mobile devices. Essentially, it ensures that Yahoo remains a relevant search site even in the midst of the increased popularity of mobile devices as opposed to traditional desktops. In fact, they are given much more control over the way that they will conduct their search engine platforms across all devices.

When all of these things are considered, it is apparent that both companies have a lot to gain by working together. In reality, it is much easier for both of them to succeed in their own endeavors by working as a team during this time. It is one of the most effective ways that both companies can gain an important advantage in the market. Furthermore, they have the opportunity to do so without spending valuable time and energy on competing with each other.