Microsoft and Yahoo revise new search deal

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By Larry Banks

Microsoft and Yahoo have just agreed to amend a 2009 search partnership, giving the latter more control over how search results are displayed both on desktops and mobile devices.

Yahoo gets more control over ads

The 10-year search partnership, that was created by former Microsoft CEO Steve Ballmer and former Yahoo CEO Carol Bartz, allowed the companies to amend or terminate the arrangement after five years.

And just last month, the companies extended by 30 days the deadline to renegotiate the deal. Earlier, Microsoft controlled how Bing displayed search results on Yahoo websites accessed on PCs, but Microsoft will now own the ads delivered from its own Bing Ads platform.

Previously, Yahoo was responsible for sales for Bing search ads, but the two have said they plan to transition sales responsibilities starting this summer.

Originally, the deal also included a revenue-sharing agreement where Microsoft paid Yahoo a percentage of Bing ads revenue delivered from Yahoo searches. This structure would remain intact, the companies said.

Both companies have struggled to remain relevant in search in the face of market dominance by Google, which looks like it will face some rocky times ahead as it’s about to be slapped with an antitrust lawsuit by the European Commission.

SOURCE: Reuters

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