Feeds

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

Thank! god! for! that!

Beginner's guide to SSL certificates

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.