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Microsoft and Yahoo Search Pact Imminent

     
7:45 am on Jul 29, 2009 (gmt 0)

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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.

7:49 am on July 29, 2009 (gmt 0)

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Those kind of upfront cash requests from Yahoo give you a sense of what kind of dire straits that company has found itself.

Letting Bing in the door at Yahoo without cash upfront is akin to a bloodless coup in the terms of unseating puppet governments.

Mark my words, MS will buy them, if it ever does, for a fraction of their original offer.

9:10 am on July 29, 2009 (gmt 0)

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Heres an update. Looks like they will announce this deal tomorrow..

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9:27 am on July 29, 2009 (gmt 0)

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Looks like there will be no up front fee paid from Microsoft to Yahoo! and instead it's simply a revenue sharing plan.

Is Yahoo! getting out of search completely? They're becoming EPN affiliates would make more sense if that's the plan. Yahoo! does have a great website and lots of well used features.

9:50 am on July 29, 2009 (gmt 0)

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Hmm, I distinctly remember Ballmer stating MSFT didn't need Yahoo! and that MSFT would go their own way without Yahoo!, so why are they even talking at all ?

System

11:45 am on July 29, 2009 (gmt 0)

redhat

 
 


The following 10 messages were cut out to new thread by engine. New thread at: msn_microsoft_search/3961733.htm [webmasterworld.com]
2:04 pm on July 29, 2009 (utc +1)
1:09 pm on July 29, 2009 (gmt 0)

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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.

2:14 pm on July 29, 2009 (gmt 0)

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