Wednesday, July 29, 2009

Microsoft and Yahoo finally agree on search deal - After years of speculation and failed talks, Microsoft and Yahoo have finally agreed to a search deal, involving Microsoft's new search engine

Highlights of the deal:

- It is a 10 year deal

- Microsoft didn't have to pay Yahoo an upfront fee

- For the first 5 years, Yahoo gets 88% of revenues from ads running beside search requests

- Yahoo gets the right to sell ads on some MSN sites

- Yahoo will save money by scaling down it's own search technology

- The deal won't close until early next year, and it will take time to integrate the search partnership. Antitrust regulators will also need time to review this deal.

My guess is Yahoo will be focusing more on news and social media. For example, their MyYahoo page lets you piece together the news you want to see on a daily basis by subject matter - sports, weather, technology, world events, etc. It will take some time and more details of this deal to see if it is a winner for both companies.

Read the full story here:


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