microsoft yahoo

So they did it. But of course, it’s an official announcement from Steve Ballmer + Carol Bartz (Yahoo!’s CEO). All in all, no more a surprise but a certain industry twist. Seems the siesta is over, isn’t it ?

The deal runs for 10 years and only “Bing search” will be used by both, implementing when useful parts of Yahoo!’s technologies.

So now, what does it mean ?

Well, mainly, this means years ahead before the pair will seriously be able to challenge Google in terms of generated revenue through search & advertising. Which means Google has more than necessary time in hands. This is the time barrier.

Ok, let’s say they made it and the pair holds 1/3 of the online ad market. What Google will do or be doing for a while ? Yes, you’re right, discounts, bulk packages, grand openings etc etc. Sure, Microsoft has cash, today at least. Let’s call it the margin barrier.

And then, if you’re asked to tell witch is the most creative company in between Microsoft, Yahoo! and Google, what would be your answer ? Well, even if you’re a devoted fan of Microsoft and Yahoo!, as a matter of fact, they didn’t bought and empowered the right technology that drives the online ad market. Google did it. Does it mean Google will rule forever ? Nope. It means there’s a third barrier to overcome : the R&D one.

But that said, this deal is a great thing, even for Google !

Press release.