Feeds

Microsoft's Yahoo! marriage skips China

Alibaba already spoken for

The Essential Guide to IT Transformation

Microsoft and Yahoo!'s search engine marriage will not include a Chinese honeymoon due to Yahoo!'s existing nuptials with the e-commerce giant, Alibaba Group.

Despite calling the duo's new search and advertising tie-in a "global deal," Microsoft must in fact overlook the country with roughly 20 per cent of the world's population.

That's because Yahoo! China doesn't really belong to Yahoo!. Back in 2005, Yahoo! pawned its China business to Alibaba.com in return for a 40 per cent share in the company and 35 per cent voting rights.

And while the deal made Yahoo!'s bottom line firmer and more attractive to Microsoft, the property is hands-off when the deal closes.

"We own and operate Yahoo! China separately from what's done in the US, so we're not impacted at all by the Microsoft/Yahoo deal," an Alibaba spokeswoman told El Reg.

The world has questioned what happens to all of Yahoo!'s search technology and coders after Microsoft takes over the biz. How about sending them to the last known remaining Yahoo algorithm refugee camp?

At the moment it's not clear if Microsoft has any intentions of wooing Alibaba with a separate pact for Yahoo! China. In the deal's announcement, Microsoft stated that Yahoo! will "continue to syndicate its existing search affiliate partnerships" — which may mean the company is fine leaving well enough alone.

In truth, Yahoo! China controls an extremely small per cent of the regional search market compared to Google China and Baidu. But Microsoft has an even smaller stake. Perhaps it's only a matter of time before there's no place safe for Yahoo! search code. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.