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Yahoo Microsoft Search Deal Has 'Escape Clauses'

   
1:27 pm on Aug 5, 2009 (gmt 0)

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Yahoo Microsoft Search Deal Has 'Escape Clauses' [news.bbc.co.uk]
Yahoo can abandon the deal if Microsoft does not produce advertising revenue per search within a certain - undisclosed - percentage of Google's.

Microsoft will pay Yahoo $50m a year for the first three years of the deal to cover unforeseen transition costs.

Yahoo can keep 88% of the net revenues from advertisements placed on its pages for five years and between 83% and 93% of the revenue for the remaining five years.

Microsoft will hire about 400 workers from Yahoo.

2:49 pm on Aug 5, 2009 (gmt 0)

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Glad to see they're working on search at MS. They need help.

I'm sorry to report that Bing just is not doing it for me and my friends. I asked people to try it and the feedback I'm getting, and from my personal experience, is that Bing is weak. And, I'm seriously trying to keep an open mind about Bing.

Dear Bing,
A prime focus should be quality geo-search results. Provide worthwhile links to small, medium and large towns and cities. This will really help your reputation.
Warmest Regards,
weeks

3:17 pm on Aug 5, 2009 (gmt 0)

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The get out clause sounds really interesting, basically if Bing can't keep up with Google then Yahoo can walk away, 400 search engineers down mind if that happens
5:04 pm on Aug 5, 2009 (gmt 0)

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Yahoo can abandon the deal if Microsoft does not produce advertising revenue per search within a certain - undisclosed - percentage of Google's.

How are they going to measure that? Seems pretty tough to me.

7:30 pm on Aug 5, 2009 (gmt 0)

WebmasterWorld Senior Member ogletree is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Yahoo is a portal and never had any business in the search algo business or self service ppc ad business. There is no ROI. Just rent it from somebody like Google or MS. They should have never lest Google imo. They would have a lot more money today. Yahoo is very good at being a portal. Companies have way too much pressure to always be doing more. Companies spend a fortune trying to get into a business they don't know and have no experience in. Nobody is willing to just be the best at what they do they have to constantly be doing something else.
11:38 pm on Aug 5, 2009 (gmt 0)

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They should have never lest Google imo.

That's my opinion also. Why not just let the best search engine deal with searches and focus on what you've proven to be good at. I don't see the point of going for second or third best, unless they're very generous.

12:51 am on Aug 7, 2009 (gmt 0)

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Just rent it from somebody like Google or MS

That's what they did with Google some years ago, but this has lead to customers moving away to that search provider.

Most of what's quoted above are NOT escape clauses, ie: hiring people, paying %-tage of revenues etc - these are just contractual obligations.

The real escape clause was missed:

It can also walk away if the share of search queries falls below a certain percentage of the market.

Now that's the real deal - if people migrate from Yahoo to Bing, then Microsoft will be fine with this deal broken up (they'll gained people), but if people move to Google, then suddenly this deal might cause problem - though, this problem will be mostly Yahoo's.

12:52 pm on Aug 7, 2009 (gmt 0)

WebmasterWorld Senior Member ogletree is a WebmasterWorld Top Contributor of All Time 10+ Year Member



People don't go from yahoo to google because they have the same organic search results. You could not prove that even if you wanted to.
4:52 am on Aug 8, 2009 (gmt 0)

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Yahoo's Santa has left the building.
 

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