Microsoft and Yahoo have been circling and sniffing at each other for over a year. Now the companies have finally struck a deal and the only problem is: it stinks.
Many have argued that the pact is the only way to successfully compete with Google’s runaway momentum in gobbling up search market share. While I would agree, the deal simply goes too far.
On the surface Yahoo is licensing the Bing search engine for many, if not most, of its global Web sites. And Yahoo is getting a great deal with 88 percent of the revenue from all search queries on its site.
But Microsoft is also leasing some core search technology from Yahoo. And may even take a few hundred employees from Yahoo. Companies don’t generally go around *encouraging* their employees to work for their competitors.
It seems more like people and technology from Microsoft and Yahoo are going to be working together to compete against Google Search. To me, that seems like less of a licensing deal and more like collusion. Then again, we’ll just have to see what the FTC has to say about it.
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I'm Dave and I like to share news about gadgets, gear, careers and design for a mobile world.
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