Microsoft-Yahoo! Deal Is Official
The partnership between Yahoo! and Microsoft became official Wednesday morning, with Microsoft’s Bing powering search functions on Yahoo! while Yahoo! becomes the exclusive worldwide relationship-sales force for premium-search advertisers for both companies.
Under terms of the 10-year agreement, Microsoft gains an exclusive 10-year license to Yahoo!’s core search technologies and the ability to integrate them into its existing Web-search platforms. Bing, meanwhile, will be the exclusive algorithmic-search and paid-search platform for Yahoo! sites.
Self-serve advertising for both companies will be fulfilled by Microsoft’s AdCenter platform, and prices for all search ads will continue to be set by AdCenter’s automated auction process, the two companies said, adding that each company will maintain its own separate display-advertising business and sales force.
Microsoft will pay traffic-acquisition costs to Yahoo! at an initial rate of 88% of search revenue generated on Yahoo!’s owned-and-operated sites during the first five years of the agreement, and it will guarantee...
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