Microsoft & Yahoo Amend Partnership, But Will Yahoo’s Next Ads Partner Be Google?

What a week we had on the news front! From Twitter, via Google and Amazon — and then the latest news about the Microsoft/Yahoo deal came on Thursday.

“After months of negotiations, Microsoft and Yahoo today finally announced a renewed search alliance, which includes amendments to the two companies’ earlier partnership,”  techcrunch reported on Thursday, adding that the deal would give Yahoo more flexibility in terms of search monetisation, and includes changes to the two companies’ ads salesforces.

The Financial Times praised Marissa Mayer, Yahoo’s chief executive, who “is pushing deeper into web search, after shaking up the company’s decade-long partnership with Microsoft’s Bing.”

Maybe Yahoo is making a decisive push into search, but does it make any sense, strategically?

It doesn’t, I’d argue.

But if you disagree, that means you may be entitled to suggest Yahoo’d likely try and strike a deal with Google. Well, how likely is that, really?

The odds are short Yahoo and Google will try to agree a deal in search ads at some point — that’s in the interest of Yahoo. But it’s unlikely Google will budge.

End of the story.

We’ll see how this one goes, although you may already know the outcome by now…

 

If you want to discuss this topic further, feel free to email us at info@hedgingbeta.com

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