SEO

Yahoo Japan Switching to Google as Search Provider

In a surprising development, Yahoo Japan just announced that it would be switching to Google as its search technology and paid search provider. Now, before we all think and ask  how could this be possible especially since Yahoo and Microsoft have been starting to work on their search ad integration deal recently. The answer lies in the fact that Yahoo Japan is not entirely own by Yahoo. Hence it has no full control of the Japanese site.

Yahoo owns only 35% share of Yahoo Japan. While Japanese Internet service provider Softbank owns around 40% of share  of Yahoo Japan. Yahoo Japan is operated independently as a separate publicly traded company with Mr. Masahiro Inoue sitting as its President and CEO while Yahoo co-founder Jerry Yang sitting on the board.

Of course, the deal is not going to pass through without opposition by various groups. Microsoft for one definitely was not please with this alliance between Google and Yahoo Japan. Japanese regulators might also look at this deal in the negative way as the alliance would corner a big chunk of the Japanese search ad market. Google currently has more than 38% of the search volume in Japan while Yahoo Japan has more than 53%.   The terms of the deal as well as its date of implementation are still unknown.

So, what do you think? Will the deal push through or will Google and Yahoo Japan face some more strong opposition from other market stakeholders?

 Yahoo Japan Switching to Google as Search Provider
Arnold Zafra writes daily on the announcements by Google, Ask.com, Yahoo & MSN along with how these announcements effect web publishers. He is currently building three niche blogs covering iPad News, Google Android Phones and E-Book Readers.
 Yahoo Japan Switching to Google as Search Provider
 Yahoo Japan Switching to Google as Search Provider

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3 thoughts on “Yahoo Japan Switching to Google as Search Provider

  1. Ok, so as laughable as this is, I doubt this will actually go through successfully. At least Microsoft and their deep pockets probably won't let it happen. Very brave of them to try though :)

  2. I think the deal will go through. It does seem inevitable that Google will gobble up Yahoo and Bing or at the very least cause one of them to become obsolete.