Microsoft and Yahoo Announce Search Deal; Go After Google

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Microsoft and Yahoo have finally teamed together for a 10-year deal that gives Microsoft access to the Internet’s second-largest search engine audience.

The long-rumored Internet search deal was announced on Wednesday, and is aimed at challenging Google’s dominance of online advertising. The deal adds a potentially potent weapon to Microsoft’s Internet arsenal as it prepares for an all-out assault against online search and advertising leader Google Inc.

“This deal is a win-win for Microsoft and Yahoo,” said Microsoft Chief Executive Steve Ballmer in an e-mail to employees announcing the alliance.

The extended reach will allow Microsoft to introduce its recently upgraded search engine, called Bing, to more people. The Redmond, Wash.-based software maker believes Bing is just as good, if not better, than Google’s search engine.

Taking over the search responsibilities on Yahoo’s highly trafficked site gives Microsoft a better chance to convert Web surfers who had been using Google by force of habit. In return for turning over the keys to its search engine, Yahoo will get to keep 88 percent of the revenue from all search ad sales on its site for the first five years of the deal, and have the right to sell ads on some Microsoft sites.

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