Yahoo Microsoft quick facts

LONDON - While the ink is hardly dry on the long-awaited landmark Yahoo Microsoft deal, Revolution wades through the PR murk to give the bare bone facts.

Yahoo Microsoft sign 10 year deal
Yahoo Microsoft sign 10 year deal

  • 10 year deal
  • Microsoft's Bing will now power Yahoo search
  • Yahoo will sell ads across both companies websites
  • Self serve advertising will be through Microsoft's AdCenter
  • Each company keeps own display ad business and sales force
  • Microsoft will compensate Yahoo through revenue sharing scheme
  • Microsoft will give Yahoo 88 per cent of search revenue generated on Yahoo's sites during the first five years of the agreement
  • Microsoft will guarantee Yahoo's revenue per search (RPS) in each country for the first 18 months
  • At full implementation (expected to occur within 24 months following regulatory approval), Yahoo is expected to earn $500 million with savings of $200 million.
  • Yahoo can also expect annual operating cash flow of $275 million
  • The agreement does not cover each companies other web properties (email, instant messaging, display advertising) In those areas, the two will continue to compete
  • Microsoft's search share increased from 8.02 per cent in May, when its engine was still Live Search, to 8.4 percent in June with Bing (comScore)
  • Yahoo's market share in June was 19.5 per cent, while Google still dominates at 65 per cent

 

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