Datamation content and product recommendations are editorially independent. We may make money when you click on links to our partners. Learn More.
![]()
NEW YORK (Reuters) – Microsoft Corp and Yahoo Inc inked a 10-year Web search deal to better compete against market leader Google Inc but stopped short of combining their display advertising businesses.
Shares of Yahoo, which had risen in recent weeks in anticipation of this deal, fell more than 7 percent in premarket trading, while shares of Microsoft edged higher.
The deal will boost Yahoo’s annual operating income by about $500 million and yield capital expenditure savings of $200 million, the companies said in a joint statement on Wednesday.
Microsoft’s Bing search engine will be the exclusive algorithmic search and paid search technology for Yahoo’s sites, while Yahoo will be responsible for selling premium search ads for both companies.
Each company will maintain its own separate display advertising business and sales force, they said.
The deal combines the number two and number three players in the U.S. market for Internet search and positions them to better compete with Google, which has an estimated 65 percent share of the U.S. search market.
Copyright 2009 Reuters. Click for restrictions.
RELATED NEWS AND ANALYSIS
-
Huawei’s AI Update: Things Are Moving Faster Than We Think
FEATURE | By Rob Enderle,
December 04, 2020
-
Keeping Machine Learning Algorithms Honest in the ‘Ethics-First’ Era
ARTIFICIAL INTELLIGENCE | By Guest Author,
November 18, 2020
-
Key Trends in Chatbots and RPA
FEATURE | By Guest Author,
November 10, 2020
-
Top 10 AIOps Companies
FEATURE | By Samuel Greengard,
November 05, 2020
-
What is Text Analysis?
ARTIFICIAL INTELLIGENCE | By Guest Author,
November 02, 2020
-
How Intel’s Work With Autonomous Cars Could Redefine General Purpose AI
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 29, 2020
-
Dell Technologies World: Weaving Together Human And Machine Interaction For AI And Robotics
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
October 23, 2020
-
The Super Moderator, or How IBM Project Debater Could Save Social Media
FEATURE | By Rob Enderle,
October 16, 2020
-
Top 10 Chatbot Platforms
FEATURE | By Cynthia Harvey,
October 07, 2020
-
Finding a Career Path in AI
ARTIFICIAL INTELLIGENCE | By Guest Author,
October 05, 2020
-
CIOs Discuss the Promise of AI and Data Science
FEATURE | By Guest Author,
September 25, 2020
-
Microsoft Is Building An AI Product That Could Predict The Future
FEATURE | By Rob Enderle,
September 25, 2020
-
Top 10 Machine Learning Companies 2020
FEATURE | By Cynthia Harvey,
September 22, 2020
-
NVIDIA and ARM: Massively Changing The AI Landscape
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
September 18, 2020
-
Continuous Intelligence: Expert Discussion [Video and Podcast]
ARTIFICIAL INTELLIGENCE | By James Maguire,
September 14, 2020
-
Artificial Intelligence: Governance and Ethics [Video]
ARTIFICIAL INTELLIGENCE | By James Maguire,
September 13, 2020
-
IBM Watson At The US Open: Showcasing The Power Of A Mature Enterprise-Class AI
FEATURE | By Rob Enderle,
September 11, 2020
-
Artificial Intelligence: Perception vs. Reality
FEATURE | By James Maguire,
September 09, 2020
-
Anticipating The Coming Wave Of AI Enhanced PCs
FEATURE | By Rob Enderle,
September 05, 2020
-
The Critical Nature Of IBM’s NLP (Natural Language Processing) Effort
ARTIFICIAL INTELLIGENCE | By Rob Enderle,
August 14, 2020
