Microsoft Makes Deal with Yahoo!

Microsoft announced Wednesday that a 10-year-deal had been made with Yahoo, which holds the second-largest number of search engine users; setting Microsoft at a higher elevation to target search engine giant, Google, reported ABC News.

The deal between Microsoft and Yahoo is not exclusive, said executives, and Yahoo could choose a different partner, reported the Washington Post. The arrangement allows Yahoo to sell advertisements on some Microsoft sites, use and promote Microsoft’s Bing search engine, in exchange for 88 percent of Microsoft’s revenue from search advertisement sales in the first five years, reported CNNMoney.

Yahoo CEO Carol Bartz said, “We have the option for using Microsoft technology for the mobile web experience…. We will start exercising the right to do that,” reported ABC News.

CNNMoney reported that Microsoft attempted to buy Yahoo for $47.5 billion in 2008, but was snubbed by Yahoo. Upon hearing that Yahoo would not receive upfront payment, shares dropped by 11 percent, Microsoft gained one percent, reported CNNMoney.

“We are very interested in doubling down on the mobile experience. (This) frees us up to invest in other areas of the mobile experience,” Bartz said.


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