Yahoo is close to making Microsoft's Bing its search provider.
The deal, which would make Microsoft a more credible competitor to Google, is likely to be announced this week, and seems likely to be based on a revenue share, not on a big fat check upfront, as some at Yahoo had hoped.
Yahoo's request for an upfront payment (it is said to have asked for several hundred million), in addition to revenue guarantees that would amount to billions over the course of the deal, caused a breakdown last week in the on-again-off-again talks. But they were revived late on Thursday, according to executives with knowledge of the situation.
Very unfortunate because now we have a two horse race. The combined forces of MS and Y! don't change anything for Google. I'd argue it makes it even easier for them because now thy only need to focus on the efforts of one search engine.
Why the choice of Bing over Y! search technology is beyond me. You're taking the third place engine and putting it in the second place spot. We could see an even greater share of SE traffic head Google's way in the long run.
For the good of Internet search, someone needs to step in and kill this deal.