Yahoo! and Microsoft have finally come to terms on a search and advertising deal after months of rumours and conjecture, writes ClickZ. Under the deal Microsoft's new search engine Bing will become the default search engine on Yahoo! for the next ten years. Yahoo! will also licence its search technology and Panama ad buying system to Microsoft. Self-serve advertising on both sites will be handled through Microsoft AdCenter. However Yahoo! will retain control of all premium search advertising sales across both firms sites. Yahoo! will receive 88% of all search revenue generated through its own and affiliate websites for the first five years. Yahoo! estimate that the deal will generate income of $500m (£303m) per year and capital expenditure savings of $200m (£121). The deal will give Bing 28% of the search market against Google's 65% share.
Last week Microsoft reported a 17% year-in-year fall in revenues as profits fell 29% to $3.1bn (£1.9bn).
From ClickZ: http://www.clickz.com, 29/07/2009
Bing: http://www.bing.com