Microsoft-Yahoo partnership approved by EU and US regulators
The 10-year search and advertising deal between Microsoft and Yahoo has been approved today by both the US Department of Justice and the European Commission.
Both companies said they plan to begin the tie-up in the next few days and the deal will be finalised by early 2012.
The deal, which was agreed in July 2009, was set up to challenge US search engine giant, Google, which currently monopolises the industry with 90% of the worldwide search market.
Under the deal, Yahoo’s website will use Microsoft’s Bing search engine, and the two companies will split the revenues.
The European Commission said its investigation showed that the deal was expected to “to increase competition in internet search and search advertising by allowing Microsoft to become a stronger competitor to Google”.
Meanwhile, commenting on the partnership, Microsoft chief executive Steve Ballmer, said: “I believe that together, Microsoft and Yahoo will promote more choice, better value and greater innovation to our customers as well as to advertisers and publishers.”
Carol Bartz, Yahoo chief executive, said the two companies will be creating a “breakthrough search alliance”.
Last month, Microsoft, which is the world’s largest software company, said profits for the October to December period has exceeded analysts expectations.
Net profit came in at $6.66 billion (£4.13 billion) for the three months to 31 December 2009, compared with the $4.18 billion it posted in the same period a year earlier.
Meanwhile, Yahoo also posted a strong quarter four performance but said sales continued to decline.
Net profit in the October to December period was $153 million (£95 million) compared with a $303 million loss in the same period in 2008.