Microsoft Corp has finally roped Yahoo Inc into an Internet search partnership , caping a convoluted pursuit that dragged on for years and finally setting the stage for them to make a joint assault against the dominance of Google Inc.
- The term of the agreement is 10 year deal .
- 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 anue 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 fnd paid search platform for Yahoo! sites. Yahoo! will contior 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.
Google tried to stop Yahoo from falling into Microsoft's cam . Last year it formed its own proposed search advertising deal with yahoo , only to be forced to retreat from that alliance after US antitrust officials threatned to sue
" Microsoft and Yahoo know that there's much mo
re that search could be " , said Microsoft chief executive Steve Ballmer . " This agreement gives us the scale and resources to create the future for search . "Search War
* Microsoft search engin Bing will now be the search engine on all yahoo sites .
* Bing to handle search ads on yahoo sites while Yahoo will be responsible foe selling premium search ads .
*Self-serve ads for both will go through MS Adcenter
*Yahoo to provide the relationship sales force for both cos' premium advertisers .
*Each firm will maintain its seperate display ad biz .
* Microsoft will compensate Yahoo through a revenue-sharing deal on traffic generated on Yahoo's network .
Yahoo estimated the deal will boost its annual operating profit by 500$ . "An unspecified number of Yahoo engineers will loose their jobs as the company scales back " , said Yahoo chief excecutive Carol Bartz .
But the deal isn't expected to close until early next year , and then it could take another 2 years before all the pieces of the partnership are in place worldwide . The companies first will give antitrust regulators time to review the proposed partnership effects on the internet ad market and then it will take time to stitch together their their different technologies .
