Microsoft SA hopes the deal between its US parent and Internet search business Yahoo gets the regulatory nod soon.
The local arm of the software giant is working towards providing services for 2010 on its Bing search engine, which will then be passed to Yahoo.
Colin Erasmus, Microsoft SA's Windows client business group executive, says the local MSN office is working on localised services. “So we are keen to see the deal with Yahoo happen soon.”
Microsoft and Yahoo made the joint announcement this week, detailing a 10-year advertising and technology agreement. This is good news for the search space, which has been dominated by Google.
Under the agreement, Microsoft will acquire an exclusive licence to Yahoo's core search technologies, which the company says will allow it to integrate Yahoo search into own search offering.
Microsoft's recently released search engine, Bing, will be the underlying technology for both companies. Yahoo will continue to use its technology and data in other areas of its business, such as enhancing display advertising technology.
The advertising agreement only extends to search advertising and not display advertising. The agreement is essentially a revenue sharing model, which will see Yahoo's sales team directing its efforts to advertising sales for both Microsoft and Yahoo.
Erasmus says the biggest benefit for users will be the availability of choice in the search market. “We want users to have more than one option. There has not been a great deal of choice in the market.”
With the coming localisation of Bing in SA, South African Yahoo users can expect to see that localisation become part of their search experience. While Yahoo currently provides customisation, there is little in terms of localisation.
Erasmus explains that Microsoft is rolling out local services on a global scale and, while he does not have a firm date for South African services, he says that as an English-speaking country, it should not be too long.
Last year, Microsoft made an offer to buy Yahoo's search advertising business and enact a revenue-sharing partnership, which the ailing Internet company rejected.
It again rejected Microsoft's offer to buy out the company at $33 per share, or $47.5 billion. Instead, Yahoo signed a search advertising deal with Microsoft rival, Google, which is being scrutinised by regulators.
Erasmus says the deal will have to be passed by the regulatory authorities before Microsoft SA can commit to full local benefits. Microsoft's international announcement explains the regulatory approval should be completed by late next year.
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