Saturday, August 1, 2009

Microsoft’s sweet Yahoo deal to take on Google !!!

Source:http://technology.timesonline.co.uk/tol/news/tech_and_web/article6736245.ece
By Jano
Not long after Carol Bartz took over at Yahoo in January she dropped the “F Bomb”. Explaining what was wrong at Yahoo, the tough-talking executive said there were “a lot of people running around telling engineers what to do but nobody is f*****g doing anything”.If anything, that endeared Bartz to potential critics. After years of bloodless management, here was a woman fired up to get Yahoo moving again.She arrived as the floundering internet giant was showing co-founder Jerry Yang the door. Shareholders were furious that Yahoo had rebuffed a $33-a-share offer from Microsoft and today the shares are worth less than half that.It had lost its way defending against the software giant and was falling ever further behind Google. Bartz was going to give Yahoo “some friggin’ breathing room” so it could “kick some butt”. Seven months later it’s Bartz’s butt that is getting the kicking. She is accused of selling off Yahoo’s crown jewel for a song.Microsoft finally reached a deal with Yahoo last week to, in effect, take over its search business. It will make Microsoft’s Bing search service Yahoo’s search engine, handing the Windows software giant almost 30% of the search market and is the end of an era in internet search, reducing the field to two key players: Microsoft and arch enemy Google.Microsoft will pay Yahoo 88% of the search revenue generated from its sites in the first five years of the agreement, the companies said. But for Yahoo, once the leader in online search, it is the end of the road.

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