More Microsoft n Yahoo
Microsoft’s search deal with Yahoo is the fruits of months of well documented talks, but in a number of ways, it is only the start of the long road ahead.
In the approaching months, Microsoft and Yahoo will not just need to win licensing permission for the deal, but also work out the way to bring together different approaches to the search market. Microsoft has spent much of its energy in the last couple years refining its core technology, improving in vertical classes, and rebranding its Web search under the Bing moniker. Yahoo, in the meantime has put lots of energy into tools that let others to build on its technology, including the Chairman ( Build your Own Search Service ) and SearchMonkey efforts.
In an interview, Microsoft Senior vice chairman Yusuf Mehdi asserted Microsoft hasn’t looked at the explicit lines of code in that area, but is open to making an attempt to take Yahoo’s best concepts and integrate them into Bing. “We like the approach that Yahoo has done,” he announced, referring to SearchMonkey and MD . “At the same time we are integrating, we are actually divide-and-conquering,” Schneider recounted in the joint interview with Mehdi.
“The fact is in the way we structured ( the deal ), it permits all of us to innovate in the areas that may jointly bring advantage. The indisputable fact that the firms have already spent time brooding about these issues reflects the different nature of the dialogue this time. While last year’s talks were done with Yahoo’s board and an ardent eye on Wall Street, the deal said on Wed.
is far more concentrated on ways to build a search business for the long run. Manager Steve Ballmer observed on the conferencing call earlier Wed. the 2 sides have a 100-page playbook vs a two-page term sheet and also observed the talks were handled by management vs delegates of the company’s boards.
In addition to being run by the top management from Microsoft’s online group, including Mehdi, Senior vice chairman Satya Nadella, and online unit President Qi Lu, Mehdi and Schneider claimed the negotiating teams customarily made a call on the companies’ engineering and sales ranks to make certain the deal they were structuring made operational sense. It wasn’t just the common few business development executives in a room hashing out money details, the pair asserted. “We really have got a great vibe with Yahoo’s operating team,” Mehdi claimed. The 2 firms will be in a position to do some work on their joint plans while the deal is outstanding, but there are boundaries as to how much collusion can happen. “We will do all the pre-work that we are permitted to do re preparing,” Mehdi recounted. “We feel just like we will make a large amount of progress.
At last , though , the 2 firms claimed they expect just integrating Bing’s results into Yahoo in the States will take many months, while moving from Yahoo’s Panama ad-serving technology to Microsoft’s AdCenter could take a year. It might be 2 years from the deal close before the 2 firms can totally implement the deal across the globe.
Microsoft’s Mehdi didn’t close the door on an eventual growth of the deal into some of the areas the 2 firms had at one point considered,eg joint work on view advertising. “Today is a start on a wonderful partnership which we are awfully excited about,” Mehdi related. “By beginning this partnership it permits us to over time build greater and deeper relations. At this time the focus is on getting to a convincing No two player in search and paid search.
One of the open questions is what will happen to each company’s business and workforce in the time the deal is outstanding. Schneider related the firms have a communications plan for workers as well as the sorts of retention bonuses planned to keep key workers in effect. “We believe this is a winning plan,” she claimed. “People wish to be a part of a winning vision.
At last , Yahoo Chairperson Carol Bartz announced some of Yahoo search workers will move to other parts of the company, some will be offered roles at Microsoft, while others will ultimately get downsized. For his part, Mehdi declared the company will continue to beef up its search staff while the deal is outstanding. “We continue to hire and invest in search.