After over a year and a half of negotiation both Microsoft and Yahoo have finally come to a deal which is set to challenge Google’s 65% share of the online search.

Under the terms of the new 10 year deal, searched on Yahoo.com will be powered by Microsoft ‘s brand new search engine Bing and Yahoo will be responsible for attracting and selling premium advertising.

Microsoft is set to pay Yahoo 88% of the revenue it gains from searches on the Yahoo website and Microsoft will also have the rights to integrate Yahoo search Technology into its existing search platform. Yahoo is reported to have said that the new agreement will generate the company an annual income of over $500 million.

Microsoft Chief Executive Steve Ballmer said that the deal will allow Microsoft to “create more innovation in search, better value for advertisers and real consumer choice in a market currently dominated by a single company.”

In a joint statement from Microsoft and Yahoo, it was said that “advertisers no longer have to rely on one company that dominates more than 70% of all search.” This was obviously an attack on Google’s dominance in the marketplace.

Article by Creative SEO