Bada-Bing: Yahoo, Microsoft Close to Search Engine Deal

By Mat Probasco,  Newser Staff
Posted Jul 27, 2009 3:44 AM CDT
This screen shot shows Yahoo Inc.'s Search Pad interface.   (AP Photo)
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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.