Yahoo Japan has said that it will select Google’s search engine technology to provide its search engine results and advertising, instead of choosing Microsoft’s one which is used by its strategic counterpart Yahoo Inc. However, the deal would not affect the position of Yahoo Inc as its strategic partner.
Microsoft and its Bing search technology got some problems, thus Yahoo Japan Chief Executive Masahiro Inoue confirmed the move that would put Google in the driver’s seat for Japanese web searches.
As the most popular search engine website in Japan, Yahoo Japan owned 35% shares of Yahoo Inc, but its big shareholders ire mobile phone and internet service provider Softbank which had 40% stake.
Google also has a larger advertising presence in Japan and would be able to better monetize the search results. Those won’t kick in until next year.Google was used by Yahoo (YHOO) for its search engine from 2001-2004 before search was seen as a primary driver of ads and revenue. It used its own search engine to deliver results within the next five years from 2004.
However, Yahoo brokered a deal to use Bing in the US and Europe. The regulators find that Yahoo still owning the portal gives them power to switch backend technologies at a later time.
Currently, Yahoo Japan uses Yahoo’s homegrown engine and must be looked for another measure when the Bing deal was reached and Yahoo decided to stop its own search effort.
Google’s share is just over 30% while Yahoo Japan’s share of the market is 57%. Microsoft has a share of about 3%. Under the deal, Yahoo Japan use online advertising and distributions systems which are developed by Google.
The company reported a net profit of 21.7bn yen ($ 248m; £160m) in the second quarter, up 13% from the 19.2bn yen it made in the same period last year.
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