It is finally official: Yahoo and Microsoft reached a long-awaited agreement, sealing a deal for a 10-year Internet-search partnership. After a year and a half of dealing, the tech giants joined forces to challenge Google’s dominance.
Under the terms of the deal:
• Microsoft will acquire an exclusive 10 year license to Yahoo’s core search technologies and will integrate them into its existing Web search platforms.
• Microsoft’s recently launched search engine Bing will be the exclusive algorithmic search and paid search platform for Yahoo! sites.
• Each company will maintain its own separate display advertising business and sales force.
• Microsoft and Yahoo will share revenue on traffic generated on Yahoo's network.
• Yahoo will sell premium ads on both sites.
“This agreement comes with boatloads of value for Yahoo!, our users, and the industry. And I believe it establishes the foundation for a new era of Internet innovation and development,” said Yahoo! CEO Carol Bartz. “
Microsoft and Yahoo combined have less than half of Google's 65% share of searches in the U.S. market in June, according to comScore. This month Yahoo handled fewer than 20% of the searches, and Microsoft held 8.4%.
"Through this agreement with Yahoo, we will create more innovation in search, better value for advertisers and real consumer choice in a market currently dominated by a single company," said Microsoft Chief Executive Officer Steve Ballmer.
Microsoft-Yahoo saga began on February 1, 2008, when Microsoft made an unsolicited $44.6 billion cash and stock bid for Yahoo.
