Yahoo and Microsoft Gang up Against Google
YaSoft or MicroHoo? Yahoo and Microsoft have reached agreement on a long-awaited web search partnership that will unite the two companies against market leader Google.
Under the no-cash deal, Yahoo will use Microsoft's new Bing search engine on its own sites, while Yahoo will act as the exclusive global sales force for the companies' premium search advertisers.
According to research firm ComScore, Google has a 65 per cent share of the lucrative search market. The combined forces of Yahoo and Microsoft will have a 30 per cent market share.
Yahoo, which last year turned down a $US47.5 billion takeover bid from Microsoft, said it stood to gain about $US500 million in annual operating income and $US200 million in capital expenditure savings through the agreement with the software giant.
Yahoo also estimated the deal would provide it with a $US275 million benefit to annual operating cash flow.
"This agreement comes with boatloads of value for Yahoo, our users, and the industry. And I believe it establishes the foundation for a new era of internet innovation and development," Yahoo chief executive Carol Bartz said in a statement.
The partnership, Microsoft said, "will improve the Web search experience for users and advertisers, and deliver sustained innovation to the industry."
Microsoft chief executive Steve Ballmer said the deal will enable Bing to better compete against Goggle, as well as attract more users and advertisers.
"Through this agreement with Yahoo, we will create more innovation in search, better value for advertisers, and real consumer choice in a market currently dominated by a single company," Ballmer said.
"This agreement gives us the scale and resources to create the future of search."
The agreement, which has a 10-year term, will be subject to review by US regulatory authorities, the companies said.
It is restricted to internet search and related advertising revenue, while the pair would retain full autonomy on other properties and products such as email, instant messaging and display advertising.
Calling the link-up a "significant opportunity," Yahoo chairman Roy Bostock said the company's board backed it with its "full and unanimous support."
"Microsoft is an industry innovator in search, and it is a great opportunity for us to focus our investments in other areas critical to our future," he said.
Microsoft to open its 'Apple-style' Retail Stores later this year
Microsoft will follow the the path blazed by Apple and open its first two bricks and mortar retail stores in the US later this year.
The software maker said on Tuesday it signed leases at shopping centres in Mission Viejo, California and Scottsdale, Arizona.
The Shops at Mission Viejo is already home to an Apple store. The other location, Scottsdale Fashion Square, does not have a competing Apple shop.
Microsoft maker picked those areas because they're "hot markets", with the right demographics, said Kim Stocks, a corporate communications director at the company.
She said the stores will sell laptops in addition to Microsoft and third-party software, Zunes, and Xbox 360 games and consoles.
News of the store strategy was leaked earlier this week on the Gizmodo technology news site. Gizmodo obtained a detailed Powerpoint presentation showing a fit out bearing a striking resemblance to the Apple Store look.
"Essentially, Microsoft is taking the best elements from the Apple Store, Sony Style and other "flagship" stores," Gizmodo said.
The Microsoft stores will feature a "Guru Bar" where customers can ask for technical advice. Apple Stores feature a service area known as the Genius Bar.
Apple, however, is not the only source of inspiration. The leaked Powerpoint document also says that the Microsoft stores will be available to host birthday parties - a service which has a long association with that other chain that specialises in (Big) Macs.
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The software maker said on Tuesday it signed leases at shopping centres in Mission Viejo, California and Scottsdale, Arizona.
The Shops at Mission Viejo is already home to an Apple store. The other location, Scottsdale Fashion Square, does not have a competing Apple shop.
Microsoft maker picked those areas because they're "hot markets", with the right demographics, said Kim Stocks, a corporate communications director at the company.
She said the stores will sell laptops in addition to Microsoft and third-party software, Zunes, and Xbox 360 games and consoles.
News of the store strategy was leaked earlier this week on the Gizmodo technology news site. Gizmodo obtained a detailed Powerpoint presentation showing a fit out bearing a striking resemblance to the Apple Store look.
"Essentially, Microsoft is taking the best elements from the Apple Store, Sony Style and other "flagship" stores," Gizmodo said.
The Microsoft stores will feature a "Guru Bar" where customers can ask for technical advice. Apple Stores feature a service area known as the Genius Bar.
Apple, however, is not the only source of inspiration. The leaked Powerpoint document also says that the Microsoft stores will be available to host birthday parties - a service which has a long association with that other chain that specialises in (Big) Macs.
Apple Launches its Touch Tablet Device before Christmas
Apple is reportedly planning to launch a new tablet-sized device before Christmas in what is a new product category that will fall between its iPhone/iPod Touch and the entry level MacBook laptop.
The company is also working with four record labels on a plan to increase digital sales of albums, according to a report in the Financial Times newspaper.
The project with the record companies - EMI, Sony Music, Warner Music and Vivendi's Universal Music Group - aims to offer interactive features with music downloads.
"It's all about re-creating the heyday of the album when you would sit around with your friends looking at the artwork, while you listened to the music," one unnamed executive told the paper.
Dubbed project "Cocktail", the Financial Times said book publishers have also been in talks with the computer maker about offering their services on the new device, which could compete with Amazon's Kindle e-book reader.
The AppleInsider blog, which broke the story on Friday, said the device will be feature a 10-inch screen and be "3G-enabled".
However the Financial Times report states that device will "probably [come] without phone capability".
The AppleInsider report puts the launch date as a first quarter 2010, citing "people well-respected by AppleInsider for their striking accuracy in Apple's internal affairs".
Confirmation of the twin projects could come as early as September when Apple traditionally launches its new line-up of iPods for the pre-Christmas shopping seasons.
iPods with cameras?
There has also been speculation that the new generaion iPods - the Nanos and Touches - will retain their current shape but will both come with built-in cameras, similar to those found on iPhones.
The Cult of Mac blog has reported that Chinese companies which make iPod accessories have been showing off new designs and protoypes with space on the back for the new features.
The iPhone 3GS, which was launched last month, comes with a 3.2 megapixel camera.
Sphere: Related Content
The company is also working with four record labels on a plan to increase digital sales of albums, according to a report in the Financial Times newspaper.
The project with the record companies - EMI, Sony Music, Warner Music and Vivendi's Universal Music Group - aims to offer interactive features with music downloads.
"It's all about re-creating the heyday of the album when you would sit around with your friends looking at the artwork, while you listened to the music," one unnamed executive told the paper.
Dubbed project "Cocktail", the Financial Times said book publishers have also been in talks with the computer maker about offering their services on the new device, which could compete with Amazon's Kindle e-book reader.
The AppleInsider blog, which broke the story on Friday, said the device will be feature a 10-inch screen and be "3G-enabled".
However the Financial Times report states that device will "probably [come] without phone capability".
The AppleInsider report puts the launch date as a first quarter 2010, citing "people well-respected by AppleInsider for their striking accuracy in Apple's internal affairs".
Confirmation of the twin projects could come as early as September when Apple traditionally launches its new line-up of iPods for the pre-Christmas shopping seasons.
iPods with cameras?
There has also been speculation that the new generaion iPods - the Nanos and Touches - will retain their current shape but will both come with built-in cameras, similar to those found on iPhones.
The Cult of Mac blog has reported that Chinese companies which make iPod accessories have been showing off new designs and protoypes with space on the back for the new features.
The iPhone 3GS, which was launched last month, comes with a 3.2 megapixel camera.
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