Yahoo takes Google's spot on CNN

The news Web site bumps Google for Yahoo to power its search results, in a deal that underscores the heated rivalry between the two companies.

Yahoo on Thursday said the online leg of the Cable News Network has tapped it to replace rival Google to power its search results, a deal that underscores the heated competition between the two companies for search dollars.

The switchover, which went live on Wednesday, means that Yahoo will provide algorithmic and paid results whenever CNN users conduct a search query on the site. Yahoo search results contain commercial links from its Overture Services subsidiary and algorithmic results culled via its Inktomi and AltaVista subsidiaries, along with technology acquired from Fast Search and Transfer .

In addition, Yahoo said it has struck an agreement with Macromedia, which produces Flash multimedia software, in an effort to improve its search technology. The deal will give Yahoo the ability to use Flash content in its search results and enable the Web portal to distribute its Yahoo Companion toolbar to certain Macromedia users.

The deals were announced as part of Yahoo's annual analyst day, where top executives present their respective businesses to investors and financial analysts. Yahoo CEO Terry Semel began the day by outlining the company's successes over the past year while raising projections for its subscription services by 50 percent.

The commercial search business has helped Yahoo emerge from the doldrums of the dot-com bust. During their partnership, Overture search results contributed to 20 percent of Yahoo's quarterly revenue. Yahoo eventually acquired Overture for $1.63 billion last year, a move that was largely a response to competition from Google.

While Yahoo once counted Google as an algorithmic search partner, the companies parted ways in February , when Yahoo launched its own search technology.

On a separate note, Yahoo also provided a glimpse of its product strategy. Executives showed new technology that streams news headlines, stock quotes and weather updates to a user's desktop bar. The desktop bar also has an area for people to enter search queries without needing to launch a Web browser.

Meanwhile, the Web portal said it plans to give its home page a face-lift during the second half of this year, which will also see other product launches.

 

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