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Yahoo! The Internet Businesses Microsoft

Yahoo Filing Reveals Details of Microsoft Deal 65

CWmike writes "Microsoft will pay Yahoo $50 million a year for three years and will hire at least 400 Yahoo employees as part of the companies' recent search agreement, according to a filing with the US Securities and Exchange Commission. Yahoo's form 8-K, which appeared online on Tuesday, reveals a few additional details about the agreement. The deal, announced last week, will mean that Microsoft's Bing search engine will power Yahoo's search site and Yahoo will sell premium search ad services for both companies. Five years into the 10-year agreement, Microsoft can opt out of the exclusive engagement for Yahoo's ad sales services, according to the filing. If it does, Yahoo will then keep 93 percent of the search revenue generated on sites owned and operated by Yahoo, instead of 88 percent. But Yahoo can also decide to remain the exclusive premium ad sales provider, in which case it will settle for an 83 percent share of the revenue. If Microsoft doesn't end the exclusive arrangement, Yahoo's share of the revenue will go up to 90 percent."
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Yahoo Filing Reveals Details of Microsoft Deal

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  • by Guse ( 1283076 ) on Wednesday August 05, 2009 @09:05AM (#28955839)
    That's a cute statement, but while Google's market share is dominant (like 67% maybe), I want to say that Yahoo has about 12% of the market... which is a pretty darn significant amount. Combined with Microsoft's share (which around 9%), you're looking at over 20% of all online ads. No, Google isn't worried, but I think that it's actually a pretty good deal for both sides.
  • BOSS? (Score:3, Interesting)

    by Alethes ( 533985 ) on Wednesday August 05, 2009 @09:15AM (#28956003)

    How does this affect Yahoo's Search API, BOSS [yahoo.com]?

  • by sharkey ( 16670 ) on Wednesday August 05, 2009 @09:25AM (#28956135)
    There are a couple folks here that use Yahoo every day: They have it set as their homepage, and the first thing they do every morning is search for 'Google' so that they can get to web sites.

    Sad, but true.
  • by Dudibob ( 1556875 ) on Wednesday August 05, 2009 @09:34AM (#28956271)
    Remember that's $50 million a year, plus 9£% of all revenue from their own sites for JUST search, plus they free up 400 peoples wages. Also Yahoo have still got Flickr, Delicious, Yahoo Mail and others to rely on. There's also a number of get-out clauses too so Yahoo can just walk away, Microsoft have come out on top of this deal but Yahoo it's not all bad for Yahoo
  • by obarthelemy ( 160321 ) on Wednesday August 05, 2009 @09:58AM (#28956643)

    My home page and main mail adresse are still with Yahoo. Mainly for historical reason: Yahoo had that stuff when Google didn't even exist, and that's when I got them. But still, as far as homepages are concerned, Yahoo is on a par with Google. Basically, I have 3 columns of RSS feeds, + mail preview. I've tried duplicating that in Google, it does... the same thing, the same way, and I'm too lazy to switch.

    I do use Google for my searches, except it's just a matter of typing "g WoW patch 3.2 notes" in the adress bar (thank you, Opera).

    Yahoo mail does not allow pop nor imap for free, which is a pain. I'd switch, except I forgot the password the my proper gmail ID (no points for guessing which it is ^^), and I can't seem to get it back.

    Strangely, I have more concerns about Google knowing everything about my online life than I have with Yahoo... Plus a little diversity is a good thing, so Home = Yahoo, searches = Google suits me fine.

  • by symbolset ( 646467 ) on Wednesday August 05, 2009 @11:01AM (#28957801) Journal

    You WILL pay his fee.

    Microsoft always makes deals that LOOK like great deals for their partners. And then there's always a term in the details for some unlikely contingency that miraculously comes true that allows them to eat their partner. It would be interesting if it weren't the same show over and over.

  • by HangingChad ( 677530 ) on Wednesday August 05, 2009 @11:39AM (#28958435) Homepage

    Microsoft will pay Yahoo $50 million a year for three years...

    That's about what Marisa Mayer spends on dry cleaning. Okay, not really, but that's a rounding error for Google.

    Microsoft and Yahoo teaming up on search reminds me of a fraternity rush when the dorks end up clinging together for survival in the corner. I just can't see anything compelling coming out of this union. Microsoft's online services are clumsy and unattractive, they're always trying to tie it to their desktop OS. And Yahoo...meh. What services do they have that Google doesn't do better? Google has Voice and Labs, are always coming out with something new, pushing into new product areas. Yahoo barely keeps up with what they have.

    This is the strategic partnership to nowhere.

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