Yahoo+Facebook - New Search Engine Coming?
But things may not be just as straightforward as they might look. Yahoo gave up on their search business and began relying on Bing for searches. Bing is built, operated and maintained by Microsoft which is Google's big time rival and owns a stake in Facebook. Many of you may even know that Facebook uses Bing search. It might look like Yahoo teaming up with Facebook for search would be same as Yahoo patterning with Microsoft but it might just not be the case. In fact, I think Yahoo teaming up with Facebook might just end their deal with Microsoft. The search deal between these two companies is meant to last for at least 10 years (currently in its 3rd year), but this new proposed partnership may bring it to the point of breaking in near future.
Yahoo - Facebook deal makes sense
Remember that Yahoo knows how search engines work. They still have their old time search engineers who'd be more than willing to built a Google rival. Facebook might just provide them with what they lack - the big amount of social, personal data which can be used to offer very personalised and relevant search results.
The deal may even work in favor of Facebook because they'll still be in control of the whole search (through personal data) and will be able to tweak it the way they want. It will also help Facebook have a share of the whole world that's out of Facebook.
Microsoft has taken a different path recently and they might just continue to take a share of the deal between Yahoo and Facebook and fight with Google.
What I see is that Google may now get a worthy competitor and if things turn out well, it could just give Google sleepless nights.