Microsoft, Yahoo finally strike search deal

by admin July 29, 2009 at 3:00 pm

Microsoft and Yahoo today at last announced a partnership between the two companies for both ads and search. The 10-year deal will see Microsoft’s Bing search engine replace Yahoo’s own in most areas and will give the Windows developer a license to Yahoo’s search technology to use for itself. In return, Yahoo will sell premium ads for both companies and will collect revenue from Microsoft for traffic sent its way during the first five years. Microsoft also vows to guarantee Yahoo’s revenue for the first year and a half the new arrangements take effect in a given country. It should improve Yahoo’s cash flow by about $275 million per year.

Both partners are adamant that they’ll each have their own separate display ads and that one won’t have control over the design of the other’s websites. They also promise to keep data private and avoid exchanging it when possible.

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