HP Decides To Eat Jerry Yang's Lunch
The deal also calls for HP, the world's largest PC maker, to install copies of Internet Explorer with an extra Live Search toolbar on those computers. Microsoft said the toolbar also links to HP services such as its Snapfish digital photo printing site.
Since Microsoft called off its $47.5 billion offer to buy search competitor Yahoo Inc., the company has been under pressure to prove it has a new plan for attracting more people to Live Search.
If Microsoft manges to cobble together a portfolio of other ways to drive search traffic to their Live Search and compete with Yahoo! for second place instead of buying it, Jerry Yang is going to have to come to work with bodyguards to keep his shareholders from beating him up everyday at his office. Don't overlook the significance of the deal; according to a Microsoft spokesman, they expect about 40 percent of computer users to use whatever search engine is the default installation on their machine.