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Yahoo, Microsoft finalize search deal


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Yahoo, Microsoft finalize search deal

Yahoo and Microsoft have finalized their agreement to install Microsoft as the exclusive search provider for Yahoo's network of sites, the companies announced Friday.

The deal, first reached in July, still needs to be approved by the U.S. government before it becomes final. But the companies said in October that they needed more time to complete the deal due to the "complex nature of this transaction," and Friday's announcement is likely the result of hundreds of hours of painstaking review from expensive lawyers.

At least company executives didn't have to rack up the frequent-flier miles to finalize this year; they signed it virtually, with Microsoft's Qi Lu and Yahoo CEO Carol Bartz representing their respective companies on the licensing agreement and Ballmer and Bartz inking the definitive agreement, according to sources familiar with the deal.

Under the terms of the deal, Microsoft will provide search technology to Yahoo for up to 10 years, also gaining access to Yahoo's search technology assets and several hundred employees. It will then pay Yahoo a significant portion of the ad revenue generated alongside those searches.

A Yahoo representative declined to comment on the specifics of what held up the final approval of the deal. Both parties said they still expect the deal to become final in early 2010, although the government is sure to take a long hard look.

Source - CNET

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I was surprised to hear that now they have finalize it. So far they were playin games it seems.

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Microsoft and Yahoo finally tie the knot

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Long awaited search partnership is completed

Microsoft and Yahoo have finally completed their much-publicised deal which will see the former's Bing search technology powering Yahoo search.

In a brief statement yesterday the two tech giants said they had "finalised and executed the definitive Search and Advertising Services and Sales Agreement and License Agreement"which was announced back in July.

"Microsoft and Yahoo believe that this deal will create a sustainable and more compelling alternative in search that can provide consumers, advertisers and publishers real choice, better value, and more innovation," the statement read.

"Yahoo and Microsoft welcome the broad support the deal has received from key players in the advertising industry and remain hopeful that the closing of the transaction can occur in early 2010."

The deal is widely seen as an attempt to challenge market leader Google in the search space. The web giant has close to three quarters of the worldwide market while a combined Yahoo and Microsoft would sit at just under a third according to the latest estimates.

Under the terms of the deal Yahoo will keep its search interface and receive 88 percent of traffic acquisition costs for the first five years, and 93 percent in the second half of the ten year deal.

Since its launch earlier this year Bing has made steady progress and impressed the critics but commentators still believe that it will take much more to seriously threaten Google's dominant position.

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