Microsoft and Yahoo’s search deal will give Microsoft’s Bing search engine much needed scale versus market giant Google, but integration challenges are a certainty as the companies rationalize assets and partners, say analysts from FBR Capital Markets. Assuming all goes smoothly, Collins Stewart analyst Sandeep Aggarwal said it may take up to three quarters for Microsoft to absorb part of Yahoo’s search related operational expenditure and for Yahoo to realize 90 percent or more of the $650 million it expects to save from running its own search engine and search ad platform.
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A successful implementation of Microsoft
and Yahoo’s search deal will give Microsoft’s Bing search engine much
needed scale versus
market giant Google, but integration challenges are a certainty as the
companies consolidate technology, advertisers and publishers, analysts
say.
M…