Today Microsoft and Yahoo! have ended months of speculation and announced a marriage between the two companies' web operations
In a joint statement released here on Wednesday, the two companies said the deal would "improve the Web search experience for users and advertisers, and deliver sustained innovation to the industry
Background on the Deal
In a joint statement released here on Wednesday, the two companies said the deal would "improve the Web search experience for users and advertisers, and deliver sustained innovation to the industry
Background on the Deal
First off, a few background snippets from several of the sources on this topic - SearchEngineLand's Live Blogging Coverage; TechCrunch; ReadWriteWeb; and the new MS/Yahoo! website Choice, Value, Innovation.
The term of the agreement is 10 years
Microsoft will acquire an exclusive 10 year license to Yahoo!'s core search technologies, and Microsoft will have the ability to integrate Yahoo! search technologies into its existing web search platforms
The term of the agreement is 10 years
Microsoft will acquire an exclusive 10 year license to Yahoo!'s core search technologies, and Microsoft will have the ability to integrate Yahoo! search technologies into its existing web search platforms
Yahoo! will continue to syndicate its existing search affiliate partnerships.
Microsoft's Bing will be the exclusive algorithmic search and paid search platform for Yahoo! sites. Yahoo! will continue to use its technology and data in other areas of its business such as enhancing display advertising technology.
Each company will maintain its own separate display advertising business and sales force.
Yahoo! will become the exclusive worldwide relationship sales force for both companies' premium search advertisers. Self-serve advertising for both companies will be fulfilled by Microsoft's AdCenter platform, and prices for all search ads will continue to be set by AdCenter's automated auction process.
Steve Ballmer, Microsoft CEO, said, "Right now there is one company that really dominates that worldwide market for search and online advertising. The partnership we are announcing today will help to create a stronger number 2 and increase competition in the search area."
Yahoo will keep 88 percent of the revenue from all ads that run alongside search requests on its site. It also has the right to sell search ads on some Microsoft sites. Yahoo estimates the deal will boost its annual operating profit by 500 million US dollars.
Ed Moltzen, Managing Editor for CRN Magazine, said, "This is an absolute steal for Microsoft, Yahoo wins the ability to stay an independent company with a huge new friend, a huge new ally in Microsoft, which can help it concentrate on other things where they think they can be more successful."
Steve Ballmer, Microsoft CEO, said, "Right now there is one company that really dominates that worldwide market for search and online advertising. The partnership we are announcing today will help to create a stronger number 2 and increase competition in the search area."
Yahoo will keep 88 percent of the revenue from all ads that run alongside search requests on its site. It also has the right to sell search ads on some Microsoft sites. Yahoo estimates the deal will boost its annual operating profit by 500 million US dollars.
Ed Moltzen, Managing Editor for CRN Magazine, said, "This is an absolute steal for Microsoft, Yahoo wins the ability to stay an independent company with a huge new friend, a huge new ally in Microsoft, which can help it concentrate on other things where they think they can be more successful."
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