The move is notable mainly due to the intense rivalry between Microsoft and Yahoo, stemming from a failed attempt by the former to buy the latter earlier in the year. Yahoo's stock has since plunged along with the economy, and company co-founder Jerry Yang recently stepped down as CEO in the aftermath. Microsoft is believed to have wanted Yahoo as a foil to Google, which it sees as its chief rival in many fields, including not only search and advertising but work applications and cellphones.
As a search engine Windows Live is continuing to struggle for acceptance, ranking third behind Google and Yahoo, with Google occupying a clearly dominant position.
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