Sunday, February 21, 2010

Microsoft, Yahoo deal three quarters of the implementation difficulties or need to integrate

According to foreign media reports, FBR Capital Markets analysts believe that although the co-operation agreement with Yahoo's search for Microsoft to compete with Google to bring much-needed size, but certainly will face integration challenges.

Collins Stewart analyst Sandeep Aggarwal said that the integration process can take up to three quarters, because Microsoft will have to digest Yahoo's search-related operating expenses, while Yahoo's to achieve savings of more than 90% of search engine and search advertising platform, operating costs, this part of the cost is estimated at 6.5 billion U.S. dollars.

FBR Capital Markets analysts on February 18 research report that will be Microsoft's and Yahoo's search engine in merger to rationalize a lot of things, they believe this partnership will face challenges in the implementation of Microsoft and Yahoo need to ensure a smooth integration process in order to prevent interruption of business customers and partners, any failure could lead to customers and partners defected to Google.

Microsoft and Yahoo is expected to be completed before the end of 2010 the United States search business, transit, and in 2010, before the holiday season will be Yahoo's advertisers and publishers to AdCenter platform. Microsoft is expected to Yahoo in 2012 before all of our customers and partners will be transferred to, this will be a huge challenge.

Sandeep Aggarwal said that even if all goes well, this process takes at least three quarters. In addition, although Microsoft has promised in the agreement in the first five years, pay 88% of Yahoo's traffic acquisition costs, but Yahoo's search revenue to achieve at least the first half of 2011.