The two giants in calm and peace create strong opposition to Google.

After several years of boardroom pushing, fallen share prices, angry shareholders, wasted money and ineffective search algorithms we have now something which will be trying to counterweight huge Google supremacy.

As nothing stays forever Google also must go at some point now we will wait to see whether it is possible for Yahoosoft to challenge Google. After recent announcements regarding Google OS release Yahoo and MSN realised that there is a great chance they will be out of the market soon if they do not combine their technologies, traffic share to overcome current problems. Bing launch which end up as another Microsoft’s failure on search market (because of low level of customers) as well as news which were around regarding YouTube advance on the second position as World’s most busy search engine created good atmosphere for this gigantic move. All these events left no doubt for Yahoo! and Microsoft what needs to be done next. For now in couple of months we can expect Bing results on Yahoo! network with Microsoft’s ads served in various places. Yahoo! secures its position revenue and is able to cut on engineers and other costs it means they sold their traffic. Microsoft will take all search engine work and advertising platform development under their wings in return for just 12% ads revenue income. For now this is 10 years contract but…

What challenges wait if there is no divorce in the future

I would say that success of this merger depends on Yahoosoft reinvention in next couple of years mostly regarding Bing search platform but not only from end user point of view but also from Advertisers point of view.
Google success is based on its AdWords platform whoever will be able to challenge its effectives will succeed. It is natural progression for Google to go from PPC to PPA (but still PPC based). But is there any reason for Bing to continue this pathway

Who said the next advertising model must be based on PPC?

Creating innovative platform for ad publishers, ad creators, online marketing agencies and finally end consumers is the major challenge for Yahoosoft.
They also have to remember there is no chance to beat Google if you do not invest in other then English based platforms.