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MONDAY, NOVEMBER 23, 2009
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Bada-Bing: Yahoo, Microsoft Close to Search Engine Deal

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(Newser) – Yahoo is close to a deal that would make Microsoft's Bing its new search engine, reports Advertising Age. To Yahoo's dismay, the deal will likely involve revenue sharing, not a fat up-front paycheck. Negotiations, which have been heated over the amount of revenue each side gets from search ad clicks, are expected to wrap up this week.

Yahoo may have no choice but to partner with Microsoft, which is reportedly willing to spend up to $11 billion on its search operations over five years. Together, both companies will benefit by chipping away at Google's search dominance—with the Bing-Yahoo consolidation taking a roughly 30% search share.

This screen shot shows Yahoo Inc.'s Search Pad interface.
This screen shot shows Yahoo Inc.'s Search Pad interface.   (AP Photo)
Yahoo Inc. headquarters in Sunnyvale, Calif.
Yahoo Inc. headquarters in Sunnyvale, Calif.   (AP Photo/Paul Sakuma, file)
The Microsoft logo is seen at the company's exhibit at the Consumer Electronics Show in Las Vegas.
The Microsoft logo is seen at the company's exhibit at the Consumer Electronics Show in Las Vegas.   (AP Photo/Paul Sakuma, file)
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As Bing grows, the first place Bing takes share from is not Google but the other guys. So Yahoo is going to lose share unless they have something radical planned. - Tim Cadogan, CEO of ad-serving
firm OpenX

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3 comments
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DarkFrancis
Jul 27, 09 3:55 AM CDT
Once again, the day I 'vanity surf' my name into Bing and it gives me more listings on me than Google does...is the day I switch searchers. It's all about me. I don't wanna see some Canadian politican ranking more highly than a two-bit Australian actor! Reply
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IN RESPONSE:
Mr.C
Jul 27, 09 1:49 PM CDT
but Bing is just so pretty!
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So_Cal_Larry
Jul 27, 09 1:57 PM CDT
I suspect that these yahoos at Yahoo realize that what they said 'NO' to way back when Microsoft was offering $32 per share was 'NO THANKS' to the goose that was, for Yahoo shareholders, laying the last golden egg. These incompetent fools - Jerry Yang included - speak well for corporate governance in the United States. Reply
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