Yahoo to Cooperate with Hewlett-Packard

Preinstalled Yahoo Toolbar in HP Computers

by Yaroslav Lyssenko

[ 09/29/2006 | 11:58 PM ]

Following a similar agreement between Google and Dell made four moths ago, Yahoo! claims that is has struck a deal with Hewlett-Packard to plant its Internet search engine on millions of computers. The alliance unites two companies trying to catch up to the longtime leaders in their respective fields.

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“The agreement requires HP to set up its desktop and notebook PCs in North America so Yahoo’s search engine appears in the toolbar of Microsoft’s Internet Explorer 7, the next version of the Web’s most widely used browser. Yahoo is hoping that the tool bar will generate more search requests, providing a springboard for more ad revenue,” writes Associated Press.

Although Yahoo remains the Web’s most trafficked destination, the company hasn’t been able to narrow Google’s huge lead in Internet search - a factor that has crimped its earnings growth and battered its stock this year. The company already has warned its revenue for the current quarter will fall below Wall Street expectations.

Through August, Google held a 44 percent share of the U.S. search market followed by Yahoo at 29 percent and Microsoft at 12.5 percent, according to comScore Media Metrix.

• Associated Press: Yahoo Teams up with HP on Search Engine.