T-Mobile, which is the fourth largest mobile service provider in US will partner with Yahoo in providing search capabilities to user. T-Mobile consummated the deal with Yahoo and the service will be referred to as Web2Go.
Yahoo and T-Mobile, a subsidiary of Deutsche Telekom AG from Germany, provided European users with search capabilities beginning of this year. The revenue generated from ad search is split between the two companies. T-Mobile phones will feature Yahoo as its default search engine as search functionality enters the US market.
According to a report from Reuter, Yahoo’s subscriber base will cross 105 million as they are already providing this facility with AT&T. At least Yahoo and Google control 80 percent of the search engine market. The fact that search engines on mobiles are used only by seven percent of users, it remains to be seen whether Yahoo will substantially benefit from this feature to increase its cash flow, which the company is desperately looking for.
There was no significant change in the share value of Yahoo too following this announcement. We have seen the share value decreasing this year in a steady manner.
There was a suggestion in fact put forth by the former CEO of Yahoo, Jerry Lang at the Web 2.0 Summit at San Francisco that after Google’s deal with Microsoft fell through because of certain anti trust concerns, Microsoft should look into purchasing Yahoo. Following this, there was a slight increase in the stock prices of Yahoo the next day, which again fell after Ballmer refuted these rumors.
