Google & Yahoo Search Marketing Deal - Knee-Jerk to Microsoft

If Google & Yahoo Search Marketing deal is materialized (Yahoo allowing Google to place online ads in Yahoo).

Yahoo Strategy

Regular commission from Google - Google is a undisputed leader in search marketing and acquired huge market share. so, yahoo allows google to use its technology to service ads and earn commission.

Difficulty to compete with Google - It is very difficult for yahoo (even for any online giants like Microsoft) to compete with Google in search segment. So, inside of competing with Google, Yahoo may plan to generate revenue from Google.

Win-Win Situation for Google & Yahoo

For Google - Now, Google can serve there Ads in Yahoo search result.

For Yahoo - Yahoo has generated a new revenue model from Google that helps to revive Yahoo from present pathetic position

This move is really a big blow for Microsoft, that plans to acquire Yahoo.