This week Yahoo announced that, despite the two companies’ deal in which Bing is set to replace Yahoo’s search, the two companies will continue to compete. Prabhakar Raghavan, a senior vice president of Yahoo, is quoted as saying “We are Yahoo and that will continue….We collaborate on the back-end but we are competitors on the front-end.”
The continuation of this nonsense from Yahoo is bound to confuse even many in the industry. Here is what we know as of today:
- Yahoo and Bing are Still Separate Entities – the planned merger will probably not take place until 2010.
- Yahoo Search users will Really Use Bing – Even if the “front-end” is branded Yahoo!, users will really be using Bing. Any “competition” that Yahoo may be planning is purely over window dressing.
- Bing will Power Yahoo Search Marketing – Bing will take over Yahoo’s Search Marketing, replacing it with Microsoft Ad Center, and give Yahoo a cut of the revenue. This is what makes statements of continued competition even more ludicrous.
- Congress May Need to Approve the Deal – Others in the search landscape may wish to force Congress to review the proposed deal on grounds that it might violate anti-trust regulations.
Those are the basics as of now. Stay tuned.