What Experts are Saying About the Microsoft-Yahoo! Deal Advertisers Several advertisers who had complained about a Yahoo-Google tie-up praised the new partnership, saying it would provide a real alternative to Google. “It is very welcome for our clients as it brings more balance to the search marketplace and may moderate pricing,” said Sir Martin Sorrell, chief executive of WPP, the world’s largest advertising agency. -- Sir Martin Sorrell, chief executive of WPP Search alliance draws fire; Financial Times; July 29, 2009 http://www.ft.com/cms/s/0/9487c65e-7c6c-11de-a7bf-00144feabdc0.html For the most part, industry analysts welcomed the planned Microsoft-Yahoo deal as a calibrated step that would strengthen both companies. “The deal allows each of the parties to focus on their core ambitions and areas of expertise,” said Bryan Wiener, chief executive of 360i, a digital marketing firm. “It will strengthen Yahoo’s hand as a pure Internet media company.” -- Bryan Wiener, CEO, 360i Please find more from 360i at 360i Point of View on the Microsoft-Yahoo Search Deal. Microsoft and Yahoo Reach Deal on Search Partnership; New York Times; By STEVE LOHR; July 30, 2009 http://www.nytimes.com/2009/07/30/technology/companies/30soft.html?pagewanted=1 “’This should give Bing the ability to serve up more relevant ads to consumers, and that powers paid search,’ said Christopher Lien, chief executive of Marin Software, whose technology helps search marketers manage their campaigns.”—Christopher Lien, CEO, Marin Software Microsoft and Yahoo Reach Deal on Search Partnership; New York Times; By Steve Lohr; July 29, 2009 http://www.nytimes.com/2009/07/30/technology/companies/30soft.html? _r=1&ref=technology “News of the deal prompted some cheers from observers who have watched the battle between Google and Microsoft for several years. "Microsoft, after having quite a bad patch, has sort of got its mojo back a bit," said Rob Norman, chief executive of Group M Interaction, the media investment management arm of advertising giant WPP.” -- Rob Norman, Chief Executive, Group M Interaction 2nd Update: Microsoft-Yahoo Pact to Face Regulator Scrutiny; Wall Street Journal; By Fawn Johnson; July 29, 2009 1:23PM ET http://online.wsj.com/article/BT-CO-20090729-716340.html
Analysts
David Hallerman, senior analyst with eMarketer, commented that "The hope (for Microsoft and Yahoo) is that better technology will mean more relevant results and more relevant results will attract more users.” Hallerman continued, "More users mean more potential to click on ads and that means more money." David Hallerman, Senior Analyst, eMarketer
Microsoft, Yahoo link up in Internet search deal; USA Today; By Theresa Howard and Jon Swartz; July 29, 2009 http://www.usatoday.com/tech/news/2009-07-29-microsoft-yahoo_N.htm “Ross Sandler, analyst at RBC Capital Markets, said some people will be disappointed that Microsoft did not give Yahoo a big upfront payment, but noted that the partnership was good overall for the two companies. ‘Overall, it's a big positive for two companies that have been struggling to keep up with Google. This consolidates their resources and allows them to make a more concerted push as the No. 2 entity,’ he said.”—Ross Sandler, Analyst RBC Capital Markets Microsoft and Yahoo in 10-year Web search partnership; Reuters; By Tiffany Woo; July 29, 2009 http://www.reuters.com/article/internetNews/idUSTRE56R6VY20090729?sp=true “Looks like a real positive. Looks like it's twice as big as the original Google deal, it's 10 years and probably about double EBITDA the original Google deal. At first estimates, looks like it's about $5 a share for Yahoo. Short term, it looks like it's really in Yahoo's favor. Longer term, it benefits both companies.” -- Jeff Lindsay, Analyst, Sanford Bernstein INSTANT VIEW: Microsoft, Yahoo sign online search deal; Reuters; By Matthew Goldstein; July 29, 2009 http://www.reuters.com/article/ousiv/idUKTRE56S2UL20090729 Bloggers
The deal could make it simpler for advertisers to choose an alternative to Google as a vehicle for online-search advertising, said industry observers. "They should be worried," Danny Sullivan, editor of SearchEngineLand.com, said of Google. "It's going to give Microsoft in one fell swoop a much bigger share of the search market."-- Danny Sullivan, Editor, SearchEngineLand.com
Microsoft, Yahoo Reach Search Deal; Wall Street Journal; By Jessica Vascellaro and Nick Wingfield; July 29, 2009 12:52 PM ET http://online.wsj.com/article/SB124886852386589989.html#mod=testMod “The core question at the heart of the DOJ's review of the proposed Yahoo-Microsoft search partnership is where else will competition to Google's increasing dominance come from, if not from the proposed Yahoo-Microsoft search partnership?” Cleland concluded, “this proposed deal puts a bright spotlight on the competitiveness of the Internet search advertising marketplace and also on what the DOJ will likely determine is the best path forward in the next few years for all involved: advertisers, publishers, and users.”--Scott Cleland, Precursor Blog Where else will a viable competitive alternative to Google come from, if not from a YahooMicrosoft deal? Precursor Blog; By Scott Cleland, July 29, 2009 http://www.precursorblog.com/content/where-else-will-a-viable-competitive-alternativegoogle-come-if-not-a-yahoo-microsoft-deal
"Although Yahoo and Microsoft will continue to be dwarfed by Google in search, the combination of the two companies creates a far more powerful counterweight to Google, one that will be welcomed by many in the advertising industry, who have watched Google rapidly become the world's largest seller of advertising with a mix of fascination and foreboding"— Steve Lohr, Tech Blogger, New York Times Microhoo Deal is Here!; Slate – The Big Money – Feeling Lucky; By Chris Thompson; July 29, 2009 http://www.thebigmoney.com/blogs/feeling-lucky Consumer Advocates “ We hope that this search deal leads to a period of aggressive privacy competition between Google and Microsoft and that consumers benefit from efforts to provide relevant services in a privacy smart manner.” -- Jules Polonetsky, Co-chair and Director , Future of Privacy Forum Search Privacy and the Microsoft-Yahoo! Agreement; The Future of Privacy Forum; By Jules Polonetsky; July 29, 2009 http://www.futureofprivacy.org/2009/07/29/search-privacy-and-the-microsoft-yahooagreement/ Academics “What is there to investigate? Microsoft and Yahoo are trying to outcompete Google. To succeed, they will need to put together the best search engine they can. The firms believe their announced partnership will help them achieve that goal. They should be allowed to try – their own money is at stake if they fail. Either way, Internet users stand to benefit. Bing and Yahoo Search should improve from the proposed partnership, which will also force Google to make its own search engine better, lest it be left behind. This is how a competitive, contestable market works. The goal of antitrust policy is to benefit consumer welfare, but there is nothing regulators can do to make an already fiercely competitive market even more so.”—Ryan young, Fellow in Regulatory Studies, Competitive Enterprise Institute Justice Department Should Leave the Microsoft-Yahoo Search Deal Alone; Competitive Enterprise Institute Press Release; July 29, 2009 http://cei.org/news-release/2009/07/29/justice-dept-should-leave-microsoft-yahoo-searchdeal-alone