Yahoo Scores Bundling Deal with HP

Yahoo and HP have entered into a partnership which will install Yahoo search and services as defaults in HP desktop and notebook computers in the U.S. and Europe.

Yahoo has scored another major bundling deal: just a couple weeks after inking a bundling deal with computer maker Acer, Internet giant Yahoo has found a new partner in Hewlett-Packard, which as agreed to install Yahoo search and a co-branded toolbar as default software on consumer desktop and portable computer systems sold in the U.S. and Europe. The deal could give Yahoo a significant presence on user desktops as both it and Google vie for scree presence as Microsoft prepares to launch Windows Vista; HP is currently ranked as the world’s second-largest computer maker, while Google has already inked a similar arrangement with number one computer maker Dell.

Financial terms of the deal were not disclosed.

“Partnering with a company like HP, that has been a leader in its industry for many years, puts Yahoo! in an excellent position to be able to distribute our most widely adopted offerings, like Yahoo Search and the new Yahoo Mail, to an even broader audience across the globe,” said Dan Rosensweig, Yahoo’s COO. “This relationship is an important component of Yahoo!’s overall strategy to partner with leading global brands that will enable us to further extend our products and services to the world’s community of Internet users.”

Under the deal, consumer desktop and notebook systems in the U.S. will feature a Yahoo and HO co-branded Toolbar for use with Internet Explorer 7. Yahoo will also be set as the default search engine for Internet Explorer 7, and Yahoo will also provide the default Web browser home page. In Europe, Yahoo will appear on the start page on consumer desktop and notebook PCs.

Many of the partnership arrangements go into effect immediately, although Yahoo won’t be set as the default search engine until Microsoft ships Internet Explorer 7.