Feeds

Microsoft! and! Yahoo! finally! sign! search! deal!

Thank! god! for! that!

5 things you didn’t know about cloud backup

It's all over - Microsoft and Yahoo! have finally signed a search deal which means the end of Yahoo!'s long-developed independent search engine.

The 10-year agreement means Yahoo! will use Microsoft's search technology and in exchange will sell both its own and Microsoft's search ads. Both companies will keep display ads sales teams. A ten year deal? That's an awfully long time on the internet...

Microsoft will pay Yahoo! for traffic acquisition from its owned and operated sites. Microsoft will initially pay Yahoo! 88 per cent of search revenue generated on Yahoo! sites for the first five years. This revenue will be guaranteed by Microsoft for the first 18 months of launch in each country. Self-serve advertising will all shift to Microsoft's AdCenter platform.

Yahoo! expects this to contribute $500m to GAAP operating income when fully implemented.

The release promises that data sharing between the two will be limited "to the minimum necessary to operate and improve the combined search platform".

The release obviously doesn't mention Google. But it does bizarrely include a line which shows both the strength and the weakness of the deal.

The statement says: "This deal will combine Yahoo! and Microsoft search marketplaces so that advertisers no longer have to rely on one company that dominates more than 70 percent of all search."

Steve Ballmer said the deal would give Bing the scale of users and advertisers to allow it to compete effectively.

Carol Bartz, CEO of Yahoo!, said the deal would "help us increase our investments in priority areas in winning audience properties, display advertising capabilities, and mobile experiences”.

The deal will need regulator approval, and the firms hope to close it early next year.

The joint statement is here. Let us know your thoughts below. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.