Microsoft-Yahoo 2.0 and Google

What the new deal between Microsoft and Yahoo means for each company, and for ‘archrival’ Google

More than a year after Yahoo shot down Microsoft’s $45 billion takeover bid, a new deal is afoot, said Peter Burrows and Robert Hof in BusinessWeek. The reportedly imminent deal is complex—Yahoo will “essentially scrap” its search technology for Microsoft’s newly rebranded Bing, and Microsoft will let Yahoo sell both companies’ search ads. But the target is clear: “arch-rival Google” and its 65 percent share of the lucrative Web search market.

The deal looks “awful,” said Henry Blodget in Silicon Alley Insider. Not only is it “complex as hell,” but it’ll be a “management and logistical nightmare” to merge Yahoo’s sales operations with Microsoft’s underlying AdCenter technology. “Who will Yahoo’s salespeople yell at” when something goes wrong? “What if Microsoft’s clients hate Yahoo, or vice versa?”

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