Yahoo Japan has chosen Google’s search engine and search-linked ad system over Microsoft in a hope to keep its #1 position in the market. Yahoo Japan is the country’s largest internet portal operator, and following Tuesday’s announcement of alliance with Google, will dominate Japan’s search market.
Yahoo Inc still has a fair stake in Yahoo Japan as its second-biggest shareholder, owning over a third of the company, and will still have its name on the Yahoo Japan brand. Yahoo Inc previously approached Google for a deal, but turned instead to a 10 year agreement with Microsoft after struggling to overcome opposition from the US government.
A post on the Japanese Google blog explained that the merge aimed to provide a more comprehensive service, benefiting from the speed and reputation of Google search, whilst integrating Yahoo services such as answers and shopping.
The search-linked ad system provided by Google will incorporate its technology into Yahoo Japan’s search advertising, while Yahoo Inc will continue to handle the acquisition and development of advertising campaigns.
Daniel Alegre, Google’s Vice President for Asia Pacific and Japan said that both companies would act as independent operators as far as deploying search and advertising services, and would continue to compete in the Japanese market, inspiring further innovation for Yahoo Japan, whilst minimising conflict with other companies. Ultimately, aim of the alliance is to bring about better services for users and partners.
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