Yahoo Filing Reveals Details of Microsoft Deal

CWmike writes "Microsoft will pay Yahoo $50 million a year for three years and will hire at least 400 Yahoo employees as part of the companies' recent search agreement, according to a filing with the US Securities and Exchange Commission. Yahoo's form 8-K, which appeared online on Tuesday, reveals a few additional details about the agreement. The deal, announced last week, will mean that Microsoft's Bing search engine will power Yahoo's search site and Yahoo will sell premium search ad services for both companies. Five years into the 10-year agreement, Microsoft can opt out of the exclusive engagement for Yahoo's ad sales services, according to the filing. If it does, Yahoo will then keep 93 percent of the search revenue generated on sites owned and operated by Yahoo, instead of 88 percent. But Yahoo can also decide to remain the exclusive premium ad sales provider, in which case it will settle for an 83 percent share of the revenue. If Microsoft doesn't end the exclusive arrangement, Yahoo's share of the revenue will go up to 90 percent."

Comments

Re:Only one problem...

[sharkey]

There are a couple folks here that use Yahoo every day: They have it set as their homepage, and the first thing they do every morning is search for 'Google' so that they can get to web sites.

Sad, but true.

If you dance with the devil

[symbolset]

You WILL pay his fee.

Microsoft always makes deals that LOOK like great deals for their partners. And then there's always a term in the details for some unlikely contingency that miraculously comes true that allows them to eat their partner. It would be interesting if it weren't the same show over and over.