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Microsoft, Yahoo Finally Strike Search Deal

By John Johnson,  Newser Staff

Posted Jul 29, 2009 7:25 AM CDT

(Newser) – Microsoft and Yahoo finally officially tied the knot today, with a 10-year deal to integrate their search and advertising businesses, MSNBC reports. It appears Microsoft won't pay Yahoo up front, which is probably a blow to Yahoo CEO Carol Bartz, who promised she'd only join Microsoft for a "boatload of money." Instead they'll share ad revenue, and Microsoft will pay Yahoo a traffic acquisition fee.

Yahoo's search will now likely be accompanied by a "powered by Bing" tag, even though Microsoft will license Yahoo's core search technology. "It’s been a long road to today’s announcement, but I’m extremely happy with where we ended up," said Steve Ballmer. "This deal is a win-win." But there's one more stretch of road ahead: the deal still has to get the OK from regulators.

An Hewlett Packard laptop running Microsoft Windows XP.
An Hewlett Packard laptop running Microsoft Windows XP.   (AP Photo/Paul Sakuma)
The Yahoo flag flies at Yahoo headquarters in Sunnyvale, Calif.
The Yahoo flag flies at Yahoo headquarters in Sunnyvale, Calif.   (AP Phoito/Paul Sakuma)
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COMMENTS
Showing 3 of 5 comments
oldgoat
Jul 30, 2009 7:43 AM CDT
I just use Yahoo for my home page but never for search. For that I use Dogpile.
Timinator2K
Jul 29, 2009 12:57 PM CDT
MS is getting a bitter taste of what it feels like to be on the other side of a popularly-supported/created monopoly.
nathanielfoster
Jul 29, 2009 12:48 PM CDT
I think this shows desperation on Yahoo's part.

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