Microsoft Corp has finally roped Yahoo Inc into an Internet search partnership, capping a convoluted pursuit that dragged on for years and finally setting the stage for them to make a joint assault against the dominance of Google Inc.
The 10-year deal announced yesterday gives Microsoft access to the Internet's second-largest search engine audience, adding a potentially potent weapon to the software maker's Internet arsenal as it tries to better confront Google, the leader in online search and advertising.
Microsoft didn't have to give Yahoo an upfront payment to make it happen, as many Yahoo investors had hoped.
Google tried to stop Yahoo from falling into Microsoft's camp.
Last year, it formed its own proposed search advertising deal with Yahoo, only to be forced to retreat from that alliance after US antitrust officials threatened to sue.
The extended reach will allow Microsoft to introduce its recently upgraded search engine, called Bing, to more people.
The Redmond, Washington-based software maker believes Bing is just as good, if not better, than Google's search engine.
Liu Ning, an analyst with the research firm BDA China, said the partnership between Microsoft and Yahoo will have little impact on China's search engine market.
"Because neither company has significant business in China, the impact of the deal is near zero," Liu said.
He said Yahoo has almost given up the Chinese market through its deal with domestic e-commerce giant Alibaba and Microsoft's online business in "China is even smaller than that of Yahoo."